Tag: Revenue Growth

illycaffè Reports 12% Revenue Growth in 2025 Amid Record Coffee Prices

Posted on by Qahwa World
Trieste, Italy — Qahwa World

Italian coffee group illycaffè S.p.A. reported a solid performance for 2025, with group revenue rising 12% to €700 million (approximately US$817.2 million), supported by higher volumes across key markets including Italy, the United States, and Europe.

The company said it achieved its fourth consecutive year of strong organic growth despite a challenging environment marked by record-high green coffee prices and geopolitical uncertainty.

Financial Performance

  • Revenue: €700 million (+12%)
  • EBITDA: €90 million
  • Net profit: €20 million
  • Net financial position: €197 million

illycaffè attributed the financial position to higher raw material costs and continued strategic investments, including acquisitions completed during the year.

Commodity Pressure Remains High

The company highlighted significant pressure from coffee bean prices in 2025. Green coffee averaged 368 cents per pound, around three times the long-term historical average and more than 50% higher than in 2024.

illycaffè said it partially offset inflation through pricing strategies and cost-efficiency measures.

CEO Commentary

CEO Cristina Scocchia said the company maintained strong momentum despite external challenges:

“2025 was the fourth consecutive period of strong organic growth for the company, despite a particularly challenging external environment and the sharp rise in raw material prices.”

She added that the company continued strengthening its position across the value chain through targeted investments and integration.

Regional Performance

  • Italy: +14%
  • Europe: +23%
  • United States: +20% (at constant exchange rates)

The United States remained a strategic priority market for the company.

Strategic Acquisitions

During 2025, illycaffè expanded its operations through two key acquisitions:

  • Full acquisition of Swiss distributor Thalwil AG to strengthen its direct presence in European markets
  • 80% stake acquisition in coffee machine manufacturer Capitani, focused on portioned coffee systems for the home segment

The company said these investments strengthen its integration across the value chain, from production to consumer-facing equipment.

Outlook

illycaffè said it expects 2026 to remain challenging due to geopolitical tensions and economic uncertainty. However, it plans to continue supporting growth through international expansion, marketing investment, and sustainable innovation.

Drinkit Expands in Dubai as Network Revenue Jumps 2.5 Times

Posted on by Qahwa World

DUBAI – QAHWA WORLD

Drinkit, the global café chain operating under a digital-first model and founded in 2016 as part of Dodo Brands, is accelerating its expansion in Dubai following strong year-on-year growth across its network.

According to Katerina Borodich, Chief Executive Officer of Drinkit UAE, the brand is set to double its local network this year. Seven franchise partners were signed last year, with new outlets now launching. Among the most anticipated upcoming locations are Dubai Hills and Creek Harbour. Franchise interest is also increasing, reflecting growing investor confidence in the concept.

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Strong Year-on-Year Growth

In January, network revenue increased 2.5 times compared to the same month last year, while the number of operating locations doubled year-on-year.

Mature stores continue to post solid gains. Marina Gate recorded 60 percent growth, maintaining similar momentum for the third consecutive year. Bay Avenue rose 58 percent compared to January 2025, while EMAAR Square reported 32 percent growth.

Performance varies by micro-location dynamics. Marina Gate and Bay Avenue benefit from additional footfall generated by surrounding residential and retail traffic, while EMAAR Square operates within a business district environment with more structured demand patterns.

You can also read: Drinkit CEO Announces Sub-40 Month Payback Period for Dubai Coffee Shops

Operational Performance

The EMAAR Square location has on occasion reached daily revenue of 10,000 dirhams, with a peak of 374 transactions in a single day. Despite its compact layout, the team continues to optimize operations to handle high customer volumes efficiently.

Unit Economics and Payback Strategy

Drinkit’s first Marina outlet reached monthly revenue of 72,000 US dollars, delivering a 26 percent store-level earnings margin after royalties. A franchise unit launched in October has already become the third highest-performing outlet in the Dubai network, generating 48,800 US dollars in monthly revenue.

As of November, the average retail payback period stood at 40 months, excluding the Mirdif location. Since then, operational refinements have reduced unit costs by 2 percent. Delivery currently represents 13 percent of total network revenue, with further growth potential identified. The target payback period is 30 months.

Preparing for Seasonal Shifts

With Ramadan approaching, typically a challenging period for retail activity, the focus remains on maintaining profitability while scaling operations sustainably.

Drinkit’s recent performance underscores the continued dynamism of Dubai’s specialty coffee market, as international café concepts pursue disciplined expansion strategies supported by franchise partnerships and operational efficiency.

Dutch Bros Surges After Strong Q3 Earnings and Upgraded Outlook

Posted on by Qahwa World

Dubai – Qahwa World

Dutch Bros (NASDAQ: BROS) reported impressive third-quarter results, surpassing Wall Street expectations for both earnings and revenue. The drive-thru coffee chain posted adjusted earnings of $0.19 per share, topping forecasts of $0.17, on revenue of $423.6 million versus the expected $413.6 million.

Revenue jumped 25.2 percent year-on-year, rising from $338.2 million in Q3 2024, while net income more than doubled to $27.3 million from $12.6 million. Same-store sales advanced 7.4 percent at company-operated shops and 5.7 percent system-wide. Dutch Bros also opened 38 new locations across 17 states, expanding its total footprint to 1,081 stores.

Chief Executive Officer Christine Barone highlighted the company’s resilience, stating that strong momentum through October prompted management to raise full-year guidance for both total revenue and same-store sales growth.

Despite the surge in sales, gross profit fell 8.5 percent year-over-year to $82.4 million, signaling higher costs for labor, commodities, or logistics. Nonetheless, operating income grew 27.6 percent to $41.5 million, and adjusted EBITDA rose 22.3 percent to $78 million, suggesting that scale and operational efficiency continue to buffer inflationary headwinds.

Key Financial Highlights

Revenue: $423.6 M (+25.2 % YoY)

Adjusted EPS: $0.19 (+11.8 % YoY)

Net Income: $27.3 M (+115.8 % YoY)

Operating Income: $41.5 M (+27.6 % YoY)

Adjusted EBITDA: $78 M (+22.3 % YoY)

Company-operated same-store sales: +7.4 %

System-wide same-store sales: +5.7 %

The raised guidance underscores management’s confidence in the brand’s growth trajectory. However, investors will closely watch gross-margin trends and the sustainability of same-store sales as Dutch Bros continues its aggressive expansion. Persistent cost pressures may require future pricing or operational adjustments, but the company’s accelerating profitability suggests its strategy is gaining traction.