Illycaffè posted a 25% drop in 2020 core earnings as restrictions put in place to contain the COVID-19 pandemic hit consumption in bars and restaurants, the Italian coffee maker said in a statement on Monday.
Adjusted core earnings (EBITDA) fell to 57.7 million euros ($69.49 million), while net profit dropped to 5 million euros from 19 million euros previously, the company, controlled by the Illy family, said.
Revenues decreased 14% to 446.5 million euros as growing sales of coffee for home consumption – either through supermarkets or online – only partially compensated for the drop in the out-of-home segment. Sales through supermarkets and online were up 30% and 39% last year, respectively.
Illycaffè said the United States were the market hardest hit by the pandemic, while sales in Asia were recovering, with South Korea posting strong growth.
The premium coffee maker in February completed the sale of a 20% stake to private equity firm Rhone Capital, opening the family-owned business to an outside investor for the first time in the company’s 88-year history. It also said at the time that it did not rule out a bourse listing in future.