For illycaffè quota of 700 million in revenues
Budget 2025 in the sign of growth in Europe and the US - New roasting plant almost ready, an investment of 120 million over 5 years doubling production capacity
by Barbara Ganz
Key points
Despite the 'perfect storm', as managing director Cristina Scocchia defines it, that approved by the Board of Directors of illycaffè Spa is a positive balance sheet for the year 2025: the Group's revenues amounted to Euro 700 million, a number never reached before and an increase of +12% at constant exchange rates compared to the previous year (+11% at current exchange rates).
The Budget
The organic growth achieved in 2025 was supported by increased volumes in all major markets, particularly in the two strategic countries Italia and the US, followed by further expansion in the European clusters. "We have learnt to navigate the stormy sea: four years ago revenues were at 500 million," summarises the CEO. "In between there are the consequences of the pandemic, the return of protectionism and tariffs, the soaring cost of energy and transport, as well as the raw material, green coffee. And now the conflict in Iran: 'We have no ships passing through Hormuz, as was the case with Suez, but we can already see that the cost of shipping a container has risen by USD 300-400 compared to before the attack. In addition to this, the price of fertilisers such as urea needed for coffee cultivation is going up. It is clear that production costs are bound to rise'.
The challenge for companies in the sector was and remains 'to assess how much they can squeeze their margins and what part of their price increases they can pass on to consumers. It has to be said that the price of a cup of coffee at the café does not only depend on the real costs of our raw material, but also on those incurred by the shopkeepers such as electricity.
The raw material
As for Arabica, the forecasts for the next harvest in Brazil are good in terms of quality and quantity and do not predict a tightening of supply. Analysts expect green coffee to fall to 250, but no one has any certainties'.
Looking at the last few years, 2025 was characterised by an exceptional increase in the price of raw materials, which averaged 368 cents per pound, three times the historical average since 1972, and more than 50% higher than in 2024. This inflationary dynamic was partially mitigated through an effective pricing strategy and cost efficiency actions. In this scenario, EBITDA stood at EUR 90 million and net profit at EUR 20 million. The net financial position amounted to EUR 197 million, mainly reflecting the increase in raw material costs and strategic initiatives to support growth, in particular the completion of two strategic acquisitions.
