Lavazza, the coffee brand, has seen its UK profit double in the latest financial year amidst “intense pressure” on its supply chain and “unprecedented” price hikes.
The Uxbridge-based division reported a pre-tax profit of £3.2m for 2024, a significant increase from the £1.5m it posted in 2023, as reported by City AM.
According to newly filed accounts at Companies House, its turnover also increased during the same period, rising from £102.3m to £110.3m.
In 2024, Lavazza’s coffee supply chain faced “intense pressure” due to climate change and “disruptions from international geopolitical events.”
The company noted “unprecedented increases” in the commodity market and despite implementing mitigating measures, Lavazza has had to pass on price increases to its customers.
Lavazza, a major sponsor of Wimbledon, Premier League team Arsenal, and Ascot Racecourse, also operates a flagship store in London.
Lavazza battles inflationary pressures
The board signed off a statement saying: “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, founded in Italy in 1895, is currently managed by the third and fourth generations of the family.
Rival Nespresso cuts UK jobs
City AM recently reported that Nespresso’s UK division has eliminated over 200 jobs and closed locations nationwide in 2024.
The company reduced its staff numbers from 716 to 499 during the last financial year, closing 11 sites.
According to 2024 filings with Companies House, Nespresso stated that the move was intended to streamline operations and “adapt to changing shopping preferences for immersive brand experiences.”
Despite these changes, Nespresso saw an increase in turnover from £338.6m to £340.7m, and a slight rise in pre-tax profit from £14m to £15m.
