February 28, 2019 / 4:55 PM / 7 months ago

RPT-Coffee maker Zanetti sees revenue expanding this year after 2018 drop

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MILAN, Feb 28 (Reuters) - Massimo Zanetti, Italy’s second biggest coffee maker, expects its revenue to expand slightly this year at constant exchange rates thanks to a boost of its restaurants and bars business, after sales shrank 4 percent in 2018.

The owner of Segafredo, Boncafe and other coffee brands said on Thursday it also sees adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) rising between 3 and 5 percent after being flat last year.

In 2018 the roaster cut costs, by restructuring its presence in some European countries, and reduced its net debt and financial costs.

This and a re-focus on the higher-margin business of supplying coffee to bars and restaurants allowed the company to boost its net profit despite a fall in the top line.

Net profit rose nearly 10 percent to 20 million euros ($23 million), with adjusted EBITDA unchanged at 74 million euros.

Following the track of global coffee chains such us Starbucks, the company is expanding in Asia with acquisitions and the opening of a subsidiary in China. ($1 = 0.8786 euros) (Reporting by Francesca Landini Editing by Alexandra Hudson)

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