ILLYCAFFÈ ANNOUNCES FIRST HALF 2023 RESULTS

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Jul 25, 2023, 09:00 ET

Revenues up in all major geographies, particularly in the United States (+16%), identified in the Strategic Plan as a priority market for growth
Profitability accelerating through organic growth and increased operational efficiency
New distribution agreement in China to accelerate the development of HOME channels, particularly online

MILAN, July 25, 2023 /PRNewswire/ -- The Board of Directors of illycaffè S.p.A. approved the interim financial report for the first half of 2023.

Cristina Scocchia, CEO of illycaffè, commented:

"We are satisfied with the results for the first half of 2023. The growth in all the main markets, particularly in the United States and in the key countries of the Eurozone, demonstrates the effectiveness of the strategies outlined in the business plan. At channel level, there was a strong boost in out-of-home (+16%), confirming our leadership position in the super-premium segment.

We have decided to accelerate in China, and I am happy to announce that we have just finalized an exclusive distribution agreement for three years with Hangzhou Onechance Tech Group (Chancemate), listed on the Shenzhen Stock Exchange with a market capitalization of over 800 million euros. Thanks to this partnership, we will strengthen our presence in the HOME channels, particularly online, with the aim of tripling our business over the plan period."

Consolidated revenues of illycaffè in the first half of 2023 recorded an increase of 5% compared to 2022, with a particularly positive result in the United States (+16%) which grew in all the main distribution channels and despite an unfavorable exchange rate impact. In particular, the Ho.Re.Ca. channel recorded a 27% growth rate supported by a double-digit new customer acquisition rate and by a trend of constant increase in average consumption per customer. The e-tailer channel recorded a 20% growth mainly driven by Amazon.

Group profitability increased by 21% compared to the previous year, thanks to organic growth in all major markets and greater operational efficiency.

illycaffè is an Italian family business, founded in Trieste in 1933 and committed to offering the greatest coffee to the world. It produces the unique illy 100% Arabica blend made of 9 of the world's best selections of Arabica, with a constant eye towards innovation. The bestowing of the first "Ernesto Illy Award for quality espresso coffee" in 1991 in Brazil and the "Ernesto Illy International Coffee Award" in 2016 symbolize its commitment to coffee growers, to whom illy pays a premium price for quality coffee. Since 2013 illycaffè – which has a presence in over 140 countries - has regularly featured on the list of the World's Most Ethical Companies. In 2019 it adopted benefit corporation status under Italian law, and in 2021 it became the first Italian coffee company to obtain B Corp international certification thanks to its commitment to abiding by the highest environmental and social performance standards. In 2022 the company employed 1230 people and posted consolidated revenues of about €567,7 million. In 2021 Rhone Capital became a minority shareholder of illycaffè to assist the company with its international growth.

SOURCE illycaffè