Massimo Zanetti Beverage Group Announces First Quarter 2018 Report

May 11, 2018

Villorba, May 10, 2018. The Board of Directors of Massimo Zanetti Beverage Group S.p.A., one of the leading brands worldwide in the production, processing and marketing of roasted coffee and other selected categories of colonial products, listed on the Milan Stock Exchange (MZB.MI), approved the Interim Financial Report as at March 31st 2018. 

MASSIMO ZANETTI, THE GROUP’S CHAIRMAN AND CHIEF EXECUTIVE OFFICER, SAID: “Massimo Zanetti said: “The results achieved in the first quarter of 2018 confirm the success and the efficiency of our strategy, which is focused on increasing profitability, thanks to the progressive improvement of the product and channel mix. The revenue of the period is substantially stable at organic level (-2.6%), with the Food Service channel growing strongly, thanks to the positive performance of all the main areas. Specifically, robust growth was recorded in Asia Pacific (+10.7% at constant FX). Furthermore, the projects to improve operating efficiency launched in some key markets, such as Italy and the Iberian Peninsula, and the general cost control enabled the Group to improve profitability indicators. Based on the results achieved and the positive expectations, the Group confirms the guidance of the year which envisages a solid increase in profitability.” 


In the first three months of 2018, the roasted coffee sales volumes of Massimo Zanetti Beverage Group S.p.A. remained substantially in line with the previous year (30.6 thousand tons compared with 30.9 thousand tons of the first quarter 2017).  

This trend is due to the already known decrease in the Private Label channel (-2.6%) and the stable volumes of the Mass Market channel (-0.6%), while the Food Service channel performed well (+5.1%), in line with the Group’s strategy which focuses on a product mix based on highly-profitable products.  

As for the geographical areas, the decrease mainly concerned the Americas (0.9 thousand tons) in the Private Label and Mass Market channels and has been partially offset by the positive performance of Southern Europe (increased by 0.5 thousand tons) mainly in Mass Market and Private Label channel and, to a lower extent, by the Northern Europe and Asia-Pacific performance. 


The Group’s consolidated revenues amounted to Euro 211.2 million in the first quarter of 2018, compared to Euro 233.6 million of the first quarter of the prior year. The decrease of Euro 22.4 million is mainly explained by external factors: the foreign exchange rates (due to the noticeable strengthening of the Euro against the US dollars) had a negative impact of -6.7% (equal to Euro 15.7 million) and the application of IFRS 15 on 2017 revenues had a negative impact of -0.3% (equal to Euro 0.7 million).  

Excluding those external factors, at organic level, revenues slightly decreased 2.6% (equal to Euro 6.1 million) mainly due to:  

 • the decrease in roasted coffee sales volumes (-0.9% equal to 2.1 million); and  

 • the slight decrease of roasted coffee sales price (-1.7% equal to Euro 3.4 million) as a consequence of the decrease of the cost of raw material (green coffee) 

Read full release here