Lavazza, the renowned Italian coffee company, has announced a revenue of €3.35 billion for 2024, marking a 9.1% increase compared to €3.1 billion in 2023. The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) reached €312 million, an 18.6% rise, while net profits climbed by 20.6% to €82 million.

According to Antonio Baravalle, Lavazza’s CEO, the company's significant presence in the United States contributes 16% to its revenue, translating to approximately €400 million.

Despite ongoing tariff challenges introduced by the U.S. administration, Baravalle emphasized that Lavazza's goal remains to expand its operations in the U.S. where the market potential continues to grow.

He noted that existing tariffs negatively impact the entire industry, including their business operations.

Lavazza plans to transfer all of its U.S. production over time, with 50% already operational.

In 2024, coffee prices surged over 70% compared to 2023, driven by increases in both Arabica and Robusta varieties.

Over a two-year span from 2023 to 2024, Arabica prices rose by 190%, while Robusta increased by 260%.

For 2025, expected price hikes are projected to continue with increases of 10% and 20%.

This price escalation has resulted in a 3.5% drop in global coffee volumes over the past two years.

Baravalle indicated that the company chose not to pass all the increased costs onto consumers, accepting a lower profit margin with the support of their shareholder families.

To navigate these turbulent conditions, Lavazza is focusing on geographic diversification to mitigate negative impacts, particularly within European markets.

In the U.S. alone, Lavazza reported a 12% revenue increase.

Notably, France has overtaken Italy as Lavazza's primary market, while China represents a key area of growth.

The company has partnered with Yum China, planning to open 1,000 stores, with 120 already launched.

Looking forward, Baravalle described 2025 as likely to be "extremely complex," citing the challenging macroeconomic environment influenced by price inflation, tariffs, and rising commodity costs.

He conveyed uncertainty about growth prospects, stating that the market may face further declines.

Regarding public trading, Baravalle asserted that the company's operations would benefit more from remaining private, avoiding the constraints of being publicly listed while still maintaining operational freedom.

The company invests 1% of its revenue into research and development, which Baravalle claims is critical for innovation and growth.

This commitment to innovation was highlighted with the introduction of Lavazza's latest product, the Tablì capsule system, reported to create a new segment within the single-serve market.

This initiative follows the acquisition of CaffeMotive in 2020 and reflects Lavazza’s engagement in developing new technologies and products.