Lavazza: Profit doubles amid ‘unprecedented’ price rises
Profit at coffee brand Lavazza doubled in the UK during its latest financial year as it battled “intense pressure” on its supply chain and “unprecedented” price rises.
The Uxbridge-headquartered division has posted a pre-tax profit of £3.2m for 2024, up from the £1.5m it achieved in 2023.
New accounts filed with Companies House also show its turnover rose over the same period from £102.3m to £110.3m.
Lavazza said its coffee supply chain came “under intense pressure” in 2024 because of climate change and “disruptions from international geopolitical events”.
It added that there had been “unprecedented increases” in the commodity market and that despite mitigating measure being employed, Lavazza has nonetheless had to pass on price rises to its customers.
Lavazza is a major sponsor of Wimbledon, Premier League side Arsenal as well as Ascot Racecourse. The company also operates a flagship store in London.
Lavazza battles inflationary pressures
A statement signed off by the board said: “Throughout 2024 the coffee supply chain has been under intense pressure due to climate change and disruptions from international geopolitical events.
“As a result, the commodity market has seen unprecedented increases on both Arabica and Robusta beans.
“The company benefits from the policies adopted by the Lavazza Group to limit the impact of volatility within the coffee market, which include procurement policies to minimise price fluctuations as well as other initiatives established through its risk management policy.
“However give the scale of inflationary pressure throughout 2024, despite these measures the company has had to mitigate the increased risk by passing some inflation to its customers and consumers.”
The wider Lavazza group was founded in 1895 in Italy and is currently run by the third and fourth generations of the family.
Rival Nespresso cuts UK jobs
The results for Lavazza come after CityAM reported that the UK arm of coffee giant Nespresso shed more than 200 jobs as it shut locations across the country in 2024.
The business reduced its headcount from 716 to 499 during its latest financial year as it closed 11 of its sites.
In accounts filed with Companies House for 2024, Nespresso said the move was designed to streamline its operations and “adapt to changing shopping preferences for immersive brand experiences”.
Nespresso’s turnover increased in the year from £338.6m to £340.7m while its pre-tax profit also nudged up from £14m to £15m.