Lavazza grows and exceeds 3.3 billion, 2025 a difficult year for price increases and duties
CEO Baravalle: 'We are accelerating the investment plan in the US to double production, in early 2025 further increases in raw material'
3' min read
3' min read
A turnover that grew by 9.1% and exceeded three billion euro, thanks in part to the latest acquisition made by the group led by Antonio Baravalle, a net profit that rose to 82 million euro, and an Ebitda that improved by 18.6% over 2023. The historical Piedmontese and Italian player in the coffee sector closed a complex year, burdened by increases in raw material prices - further rises on Arabica and Robusta also in the first months of 2025 - and geopolitical uncertainties, and opened another one in which the duties imposed by the US administration are holding sway.
On the first emergency, that of the cost of imported coffee beans, Lavazza has intervened by revising its price lists and losing a couple of profitability points. On the second aspect, however, Baravalle's goal is to accelerate the industrial plan in the United States, where in any case Lavazza already has a plant in Pennsylvania, following the acquisition of the Canadian Kicking horse, in order to guarantee the Italian brand at least a doubling of production volumes in a more than promising market.
'We are considering accelerating an investment plan that was originally going to take five years,' explains CEO Baravalle, 'in order to cope with American demand. What worries us, however, and which we are currently evaluating, are the possible 10% duties on imports from Brazil, one of the two main countries from which we buy raw materials. A rickshaw all to be built, therefore, which makes Baravalle, who has been at Lavazza for almost 14 years, say that the current year could be the most difficult one, even compared to the Covid period.
Listing on the stock exchange is not an option being considered - 'We don't need it,' says Lavazza's CEO - 'in fact, it could be counterproductive for our business' - while the Group remains focused on the takeover bid made on 49% of Ivs with the option on 100% of the vending machine company.
On the innovation front, 'we have always wanted to maintain our investment in Research and Development,' emphasises Baravalle, who launches, in the year of the group's 130th anniversary, the new Tablì system, 'a product that allows us to open up a new product category, the "tab" made of 100% coffee, in a strategic segment such as single-serve'.
