Coffee Service

Illycaffè posts profit in 2020 on homeowner and e-commerce sales

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May 4, 2021

Illycaffè SpA reported profits for 2020 despite the COVID-19 pandemic, as home consumption and e-commerce sales partially offset a decline in the out-of-home segment, according to the company's annual report.

Revenue for the year decreased 14% to €446.5 million ($538.43 million), according to a press release on the annual report.

Net profit was €5 million ($6.03 million), while net financial position was negative €103.3 million ($124.57 million), an improvement of €10.7 million ($12.9 million) compared to the prior year.

The company posted a 21% gain in home consumption sales, a 39% growth in e-commerce sales and a 30% increase in Italian supermarket sales, with aluminum capsules increasing 10%.

Home consumption accounted for 56% of total revenue compared to 40% in 2019. The growth was evident in both portioned coffee systems including espresso capsules and compostable paper pods, as well as in the ground coffee and coffee bean sectors.

The U.S. was among the hardest hit geographic markets, while South Korea showed strong growth.

"We faced the pandemic with solid fundamentals, a clear vision of the value of our brand, and a strong commitment to the digitalization of our business," CEO Massimiliano Pogliani said in the press release. "As the international vaccine campaign speeds up and the pandemic is gradually brought under control, consumers and companies will return to a new normal, with further opportunities for growth."