MILAN, Might 3 (Reuters) – Illycaffè posted a 25% drop in 2020 core earnings as restrictions put in place to comprise the COVID-19 pandemic hit consumption in bars and eating places, the Italian espresso maker mentioned in an announcement on Monday.
Adjusted core earnings (EBITDA) fell to 57.7 million euros ($69.49 million), whereas internet revenue dropped to five million euros from 19 million euros beforehand, the corporate, managed by the Illy household, mentioned.
Revenues decreased 14% to 446.5 million euros as rising gross sales of espresso for house consumption – both by supermarkets or on-line – solely partially compensated for the drop within the out-of-home phase. Gross sales by supermarkets and on-line had been up 30% and 39% final yr, respectively.
Illycaffè mentioned america had been the market hardest hit by the pandemic, whereas gross sales in Asia had been recovering, with South Korea posting sturdy development.
The premium espresso maker in February accomplished the sale of a 20% stake to non-public fairness agency Rhone Capital, opening the family-owned enterprise to an outdoor investor for the primary time within the firm’s 88-year historical past. It additionally mentioned on the time that it didn’t rule out a bourse itemizing in future.
($1 = 0.8304 euros)
(Reporting by Cristina Carlevaro, modifying by Agnieszka Flak)
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