Massimo Zanetti Beverage Group Reports Financial Results

Sept. 4, 2015

The Board of Directors of Massimo Zanetti Beverage Group S.p.A., a world leader in the production, processing and distribution of roasted coffee and other selected categories of colonial goods, approved the half-year Financial Statements at June 30, 2015, prepared in accordance with Article 154-ter of Italy’s Consolidate Law on Finance (TUF).

Financial results and business performance for H1 2015 were in line with the key elements of the Group’s strategy. The Group therefore foresees a considerable revenue growth in 2015 compared to the previous year, owing to improved profitability and efficiency.

Consolidated financial highlights at June 30, 2015

The Group’s consolidated net revenues amounted to € 450.5 million (+29.0% compared to € 349.2 million for H1 2014), Boncafé, acquired in August 2014, contributed to this result for € 20.6 million. The Group's profit was € 0.9 million, net of IPO costs amounted to € 2.6 million.

Consolidated Gross Profit was € 170.9 million, up 12.2% compared to the same period of 2014 (€ 152.3 million at June 30, 2014). Gross Profit performance was positive despite coffee price fluctuations.

EBITDA (adj) amounted to € 23.5 million, unchanged compared to € 23.6 million at June 30, 2014. This result was driven by the Group’s efficiency-building process still underway.

Revenue performance by distribution channel and geographical area

MZBG distributes its products through three main channels: Mass Market (35.1%), Foodservice (20.3%), and Private Label (37.8%). The Group is increasingly focusing on the Foodservice channel, which is characterized by higher profitability, mainly in the U.S. and Asian markets. Sales through the Mass Market channel are also increasing, thanks to the strategic enhancement of brand awareness and a greater focus on single-serve products.

With reference to the Group’s geographical footprint, the U.S. market accounts for approximately 49.6% of total revenues, whereas France is the Group’s second market (10.8%), followed by Italy (9.8%). Sales are effected under numerous brands, whereas Segafredo is the global trademark exporting Italian coffee worldwide.

“The Group — listed on the stock exchange as of June 3, 2015 — performed well in the first half of the year, in line with our strategy: improvement of operating efficiency and greater attention to all the opportunities offered by Asian markets,” commented Massimo Zanetti, Chairman and CEO. “We will forge ahead, both through organic growth achieved by strengthening our market positions and external growth through targeted acquisitions.” Full report.