Coffee Maker Zanetti Sees Revenue Expanding This Year After 2018 Drop
Massimo Zanetti, Italy's second biggest coffee maker, expects its revenue to expand slightly this year at constant exchange rates thanks to a boost of its restaurants and bars business, after sales shrank 4% in 2018.
The owner of Segafredo, Boncafe and other coffee brands said on Thursday it also sees adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) rising between 3 and 5% after being flat last year.
In 2018 the roaster cut costs, by restructuring its presence in some European countries, and reduced its net debt and financial costs.
This and a re-focus on the higher-margin business of supplying coffee to bars and restaurants allowed the company to boost its net profit despite a fall in the top line.
Net profit rose nearly 10% to €20 million ($23 million), with adjusted EBITDA unchanged at €74 million.
Following the track of global coffee chains such us Starbucks, the company is expanding in Asia with acquisitions and the opening of a subsidiary in China.