illycaffè Reports Record-Breaking Financial Success in 2024

In a significant announcement, illycaffè S.p.A. revealed its exceptional financial performance for the year 2024, demonstrating strong growth and resilience even amid a challenging global environment. The company's Board of Directors approved the draft Financial Statements which highlight a consolidated revenue of €630 million, marking a notable increase of 6% compared to the previous year. This growth trajectory, sustained for the third consecutive year, reflects an impressive escalation in net profitability, soaring by 42% year-over-year to exceed €33 million.

The foundation of this remarkable financial achievement can be attributed to the robust organic growth and rising sales volumes across all major markets, especially in regions such as Italy, the United States, Spain, France, and the United Kingdom. In particular, the Gross Operating Margin (EBITDA) surged to €110 million, up from 19% in 2023, indicating a solid EBITDA margin at 17.5% of revenues. Furthermore, the company's Net Operating Margin (EBIT) witnessed a staggering 50% increase to reach €61 million, showcasing effective operational management and strategic investments.

One of the standout aspects of illycaffè's achievements in 2024 is the noteworthy increase in the Net Financial Position, which improved by 10% to €109 million. This was primarily supported by strong cash generation, enabling the company to embark on strategic investments aimed at expanding production capabilities, fostering sustainable innovation, and expediting digital transformation efforts. The PFN/EBITDA ratio notably declined to 1x, compared to the previous year’s figure, indicative of a healthy financial structure.

As part of recognizing the extraordinary achievements of its workforce, illycaffè announced an amazing €1 million bonus to its global team of over 1,000 employees. This bonus reflects the company’s appreciation for their dedication and hard work, especially in light of a challenging macroeconomic and geopolitical landscape, combined with rising raw material costs.

Cristina Scocchia, the CEO of illycaffè, expressed her gratitude and optimism regarding the company’s performance in her statement: "2024 marked the third consecutive year of robust organic growth, with impressive double-digit increases in both EBITDA and net profit, despite significant challenges. Our commitment to sustainable innovation and strategic international expansion has been informed by our last three years of operations. The incredible performance of our employees is the cornerstone of our success, and this bonus is a token of our appreciation for their continued commitment."

Looking forward, illycaffè acknowledges the daunting challenges awaiting the industry in 2025, particularly the surging costs of raw materials. The price of green coffee has notably increased, marking an uptick due to previous surges in 2024. Nonetheless, the company remains steadfast in its commitment to mitigating margin impacts through continued investment in innovation and international market growth. The firm furthermore reaffirms its impressive €120 million investment initiative, aimed at doubling production and logistics capabilities in its Trieste facility.

As illycaffè continues its trajectory of success, it proudly maintains its leadership in the super-premium coffee sector in Italy and enjoys an upward trend across all major international markets, notably achieving an 11% sales increase in the United States. Growth was prominently evidenced across distribution channels, particularly in the Ho.Re.Ca. sector and modern distribution channels, which reported respective growths of 6% and 10%.

illycaffè’s dedication to quality and sustainability resonates through its history and operations since its establishment in 1933. The company, which has managed to assert itself in over 140 countries, remains committed to providing the finest coffee. It uses the 100% Arabica blend, sourced from the world's finest selections, while ensuring a focus on sustainable and innovative practices throughout its operations.

With its record-breaking financial results in 2024, illycaffè stands as a testament to resilience and progressive growth, setting benchmarks for the industry while ensuring that its employees and partners thrive along with the brand in the coming years.