August 7, 2019 / 4:23 PM / 3 months ago

Massimo Zanetti cautious on 2019 after fall in H1 coffee sales

MILAN, Aug 7 (Reuters) - Italian coffee maker Massimo Zanetti revised down its forecast for core earnings in 2019 after reporting a slight fall in its first-half sales.

The company — which owns several coffee brands including Segafredo, Boncafe and Puccino’s — said it currently forecast a 3% growth for its adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) this year, down from a previous guidance on EBITDA growth of between 3% and 5%.

The group, however, confirmed it was expecting a slight increase in its full-year revenue and a net debt of around 195 million euros.

Between January and June, revenue fell 1.8% at constant exchange rates to 440 million euros ($494 million), hit by shrinking sales in North and South America and Southern Europe.

In the Americas region, which accounts for nearly half of Zanetti’s total revenue, Zanetti reported falling sales mainly in the supermarkets, it said in a statement.

In Southern Europe, which comprises its home turf, Zanetti said its sales were dented by a fall in the price of roasted coffee.

Adjusted EBITDA excluding the effects of accounting standard IFRS 16 fell 3.4% in the first half, with adjusted net profit down nearly 30% due to higher financial costs.

$1 = 0.8902 euros Reporting by Francesca Landini, editing by Juliette Jabkhiro

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