DOUBLE-DIGIT GROWTH IN REVENUES COMPARED TO 2021

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Aug 01, 2022, 13:23 ET

Revenues grew by +21% compared to 2021 thanks to growth in all markets and distribution channels
Profitability grew compared to 2021 thanks to increased revenues and improved operational efficiency
Strong focus on the key strategies identified in the strategic plan, particularly the development in the United States and the digital channel

MILAN, August 1, 2022 /PRNewswire/ -- During the first half of 2022, illycaffè's consolidated revenues grew by 21% compared to 2021.

In the Ho.Re.Ca. channel, revenues benefited from a gradual recovery in out-of-home consumption, and saw double-digit growth compared to 2021, narrowing the gap with pre-pandemic levels. This was especially true in Italy, where revenues grew by 30% compared to 2021 thanks to an acceleration in the rate of new client acquisition, particularly in the premium segment, and to an increase in average consumption.

Revenues grew compared to 2021 in the HOME channel as well. In particular, revenues from the online channel grew by 11% compared to 2021, with the United States and China driving growth.

In the United States, a priority market of the industrial plan, revenues grew by 34% compared to 2021 thanks to the positive performance of the modern trade, which was due, among other things, to strengthened collaboration with Amazon, and recovery in the food service channel.

The other markets in which the brand is present also saw significant growth in revenues compared to 2021. In particular, revenues in China grew by 16% compared to 2021, driven by the online channel.

In spite of constant pressure due to increases in the costs of raw materials and logistics costs, EBITDA grew compared to the previous year, as it benefited from increased revenues and improved operational efficiency reflecting a strong strategic focus on long-term drivers of growth.

Cristina Scocchia, Chief Executive Officer of illycaffè, commented as follows:

We are pleased with the results achieved in the first half of 2022. The positive performance of all markets underscores the effectiveness of the strategies laid out in the industrial plan, which revolve around international growth with a focus on the United States and China, which are the markets with the highest potential for us. Revenue increase was supported by all distribution channels, with a good balance between home and out-of-home.

Despite the exponential rise in the cost of raw materials and logistics, EBITDA saw an acceleration, fueled by a rise in revenue and a stronger operational efficiency, reflecting a strong strategic focus on long-term drivers of growth.

Such results are a solid base to face a year that we expect to be complex and challenging, especially on the profitability front, due to the growing uncertainty and volatility related to the macroeconomic context and geopolitical tensions.

illycaffè is an Italian family-owned company, founded in Trieste in 1933. Its mission has always been to offer the best coffee to the world. Illycaffè produces a unique 100% Arabica blend, combining 9 of the best varieties in the world, selected by illycaffè: every day 8 million cups of illy coffee are served in over 140 countries around the globe, in the cafés, restaurants and hotels, in single-brand cafés and shops, at home and in the office. As a result of its innovations, illycaffè contributes to the coffee technology progress at global level. In 1991, the "Premio Ernesto Illy de qualidade sustentavel do cafè para espresso" was launched in Brazil for quality espresso coffee. Illycaffè has contributed to the sharing of the know-how, paying growers a premium price for the best quality selected by illycaffè. Since 2016, with the "Ernesto Illy International Coffee Award", the company has celebrated coffee growers all over the world that, according to illy, have produced the best sustainable coffee. Since 2013, the company has been in the list of the World Most Ethical Companies. In 2019, it enhanced its commitment to pursue a sustainable business model integrating the interest of people with the environment, adopting the status of Società Benefit (Benefit Company) and adding this commitment into its own bylaws. In 2021, illycaffè was the first Italian company in the coffee sector to obtain the international certification as B Corp as a result of its commitment to comply with the highest standards of social and environmental performance. The company also founded the University of Coffee, which has the objective of sharing culture at all levels, offering a comprehensive and practical training to growers, baristas and coffee lovers. Everything that is "made in illy" is about beauty and art, the founding principles of the brand, starting from its logo, designed by artist James Rosenquist, up to illy Art Collection cups, decorated by over 120 international artists. In 2021, the company had 1305 employees and a turnover of about €500 million. There are 205 illy single-brand shops in over 40 countries all over the world. In 2021, Rhone Capital became a minority shareholder of illycaffè with the aim of contributing to the company's international growth plans.

SOURCE illycaffè