MILAN, Nov 8 (Reuters) - Italian coffee group Massimo Zanetti reported an improvement in its margins on Thursday as it focuses on more profitable segments.
The group — which produces and sells many different brands including Segafredo, Boncafe and Chock full o’Nuts — said gross profit fell 2 percent on the year, but the margin on sales rose to 43.7 percent from 41.2 percent.
The company is gradually shifting towards higher margin businesses such as supplying coffee to restaurants, bars and managing its own cafeterias. At the same time it is pruning its private label and mass market businesses.
Sales came in at 654 million euros ($747 million) in the first nine months, down 3.7 percent year-on-year at constant exchange rates and applying the same accounting standards.
The group expects full-year revenue stable and a rise in adjusted core earnings of around 5 percent. ($1 = 0.8754 euros) (Reporting by Francesca Landini; editing by Stephen Jewkes)