The goal of doubling sales in the United States and the strong development of e-commerce. Milan or Wall Street for listing. 2021 profits in progress, investments in Trieste
Trieste. Illycaffè closed 2021 with a net profit of 11.9 million euros, a marked increase (+104.7%) compared to 2020, but was strongly marked by the epidemic. Consolidated revenue was nearly €500 million (+17.4%), driven by a gradual recovery in consumption outside the home.
Cristina Scocchia’s mission starts from these figures since January 1, the CEO of Illycaffè, who will soon present the new industrial plan to the Board of Directors for 2026. Scocchia is also a member of the board of directors of the eyewear giant EssilorLuxottica and a few days before the Fincantieri Group.
Christina Scoccia, how do you analyze these findings?
We are approaching 500 million in pre-pandemic sales volume with a recovery also supported by digital sales. Net financial position improved by 9.9% to €123.5 million. The results of 2021 and the improvement in the profitability file represent a strong starting point for facing this year, which is characterized by a challenging macroeconomic context that is affected by geopolitical tensions.
How is the Italian market performing?
We are also growing thanks to the fact that restrictions caused by the pandemic have been relaxed. Italy recorded a 16.7% increase in revenue compared to 2020. We are back to higher levels than two years ago. Our historical presence in the Horeca Canal (hotels, restaurants, bars), which is the heart of the company, is recovering a lot. Also in the first months of 2022 we recorded a good recovery in Italy.
What are the controls of the new five-year industrial plan?
Our plan is a very expansive one that places great emphasis on e-commerce and development in a large scale distribution channel. In the international markets, we want to double the market share in the United States, which today accounts for 15% of our turnover, by developing expansion of our extensive distribution channel. We are also looking to boost the Chinese market by winning over consumers who are traditionally accustomed to consuming tea.
How do you plan to double your sales in the US?
In the United States, the world’s leading market for coffee sales, we are considering strengthening our medium and long-term collaboration with Amazon to drive growth in e-commerce by improving our virtual store. In the United States, they appreciate the high quality of illy coffee, especially because it is associated with the success of Made in Italy. With Jeff Bezos’ group, we’re also thinking about digital collaborations in Europe. The goal is to boost online sales growth by investing in our store and marketplace.
Its plans include listing on the stock exchange.
It is a medium term project. The goal is to announce to the public during the Industrial Plan (2022-2026), but it is too early to give a specific date at a time of great uncertainty due to war and the still-resilient pandemic. Not sure if it will be Piazza Avary, shareholders can choose Wall Street. We are ready for both hypotheses considering that as of this year we have adopted International Accounting Standards.
How do you deal with rising raw material prices, including green coffee, and logistics costs?
The price of green coffee soared to an all-time high of $100 per pound in November 2020 to $260 in February. In this scenario, there are also the logistics costs that have brought container rentals well above €10,000. Above all, the blockade of Shanghai port due to the epidemic weighs heavily on us. We do not expect a quick return to the values of two years ago, but this scenario does not harm our growth plans thanks to the development of sales in the USA and Europe.
Investment plans in Trieste?
Trieste will remain the company’s beating heart even as ilycaffè becomes more global, and here we will continue to invest by strengthening our product lines. –
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