Food

Lavazza grows by 15% in 2025 and doubles revenues in ten years

Raw material increases and tariffs of the Trump administration weigh heavily - CEO Baravalle: 'We accelerate the plan to increase production capacity in the US'

by Filomena Greco

Antonio Baravalle, CEO di Lavazza

3' min read

Translated by AI
Versione italiana

3' min read

Translated by AI
Versione italiana

A year of growing revenues, by 15.7%, in value and not in volume, with the price of raw materials rising sharply from 2021. The Lavazza Group is close to 4 billion in revenues in 2025 (3.9 billion), double the result of 2016, the year of the acquisition of the French Carte Noire, followed by Merrild (Denmark) and Kicking Horse Coffee (Canada). "The economic environment remains characterised by an unprecedented level of complexity for the global coffee supply chain," the Group wrote in a note.

The context and results

From January 2021 until early 2025, Arabica coffee has risen by +230% and Robusta quality by +325%. Raw material price dynamics reduced margins - Ebitda margin of 8.8% compared to 9.3% in 2024 - but the group's efforts on cost management and efficiency ensured an Ebitda of 340 million, +8.8% compared to 312 million in 2024, Ebit of 157 million, compared to 130 million in 2024, and cash generation that improved profit, from 82 to 92 million last year, and the net financial position, negative at 432 million compared to 511 million a year earlier.

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"In this scenario, our priority remains to maintain discipline and focus, protecting our People, our Brands and the ability to continue to invest over the long term, while preserving the consistency of positioning and high quality standards that have always characterised the pact of trust with our consumers," highlights CEO Antonio Baravalle.

After declining by -3.5% in volume over the two-year period 2023-2024, volumes fell further by 2.4% in 2025. To this already difficult context, last year was added the dynamics linked to the tariffs imposed by the United States, which further impacted the dynamics of the sector and the supply chain, "contributing to increasing uncertainty and cost pressures, with effects that are reflected throughout the supply chain and on industrial and logistical planning choices," the Lavazza press release highlights.

The push from the US

The Group is accelerating the process, which has already begun, of expanding its production capacity in the United States, particularly in the West Chester, Pennsylvania, plant, which today guarantees coverage of 50% of the American market's needs. The North American market, in particular, recorded an increase in turnover of +26.9%, driven mainly by Retail and E-Commerce.

'The dynamics of the US market and the higher costs related to import tariffs have convinced us to accelerate the process already underway,' Baravalle emphasises, 'of strengthening the production capacity for the local market installed in North America.

The push for innovation of the Group controlled by the Lavazza family saw, in its 130th anniversary year, the launch of the 100% coffee Tablì system, a project resulting from an articulated process of research, industrialisation and patent development, which offers a new consumption experience and high in-cup quality, eliminating the need for a protective wrapper for coffee extraction.

Attention to cost management, both operating and capital, optimisation of working capital, through structural initiatives to transform and make the supply chain more efficient, to strengthen the operating model and the control of inventories and flows, as well as an effective rationalisation of the product portfolio: these were the levers used by management during a year that saw highly complex market dynamics and had to absorb increases in raw material costs, new commercial policies in the USA and variables in global logistics.

Sustainability and the Global Parental Policy

Lavazza's commitment to integrating ESG principles remains at the forefront, "through an approach that combines environmental sustainability, social responsibility and value creation throughout the coffee supply chain". In 2025, as part of the Gap Free platform, representing the Group's commitment to Diversity, Equity & Inclusion, the new Global Parental Policy was activated, which recognises the value of parenting in all its forms and promotes a fairer balance in care burdens. "The policy establishes, for example, a global minimum standard of at least eight weeks of fully paid parental leave for all parents with direct and permanent contracts in the Group, applying without distinction of gender and including hetero- or homo-parental couples, single-parent households and natural or adoptive parents," clarifies a note.

In 2025, there will be more than 5,800 Lavazza Group employees worldwide. In exchange for the achievement of results, in 2025 the bonus for objectives was recognised, with amounts of up to 4,000 euros gross for each employee in the management offices and Italian factories, "while the specific incentive plans for the sales force achieved average results of 117% compared to targets, confirming the link between company results and redistribution of the value generated".

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