Italian coffee maker Lavazza said on Wednesday it expects a tough 2022 due to rising commodity prices after announcing a sharp rise in profits for 2021.
The family business said it decided to suspend all activities in Russia and also had to temporarily suspend distribution in Ukraine.
The company said last year that it expects revenue to rebound in 2021, reaching at least the 2.2 billion euros ($2.58 billion) it reached in 2019, and continues to seek merger and acquisition opportunities.
Lavazza said it faces “an extremely complex and challenging 2022” due to rising commodity prices.
“First and foremost green coffee, but also packaging, energy, logistics – and the risks arising from the current dramatic geopolitical situation,” said managing director Antonio Baravalle.
The price increases were mainly due to global supply chain issues and damage from weather events, the Turin-based group added.
Earnings before interest, taxes, depreciation and amortization (EBITDA) were €312 million ($337.93 million) in 2021, up 23.3% from 2020.
Revenues increased by 11% to 2.3 billion euros last year, also thanks to a recovery of the “out-of-home” channel after the slowdown caused by the COVID-19 epidemic, when the closures maintained people at home.
In September last year, the Italian coffee producer and distributor launched new Nespresso compatible capsules with no C02 impact.
The company said its first carbon neutral range is dedicated to the retail sector and aims to help neutralize the impact of carbon dioxide by offsetting emissions.
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