Tchibo Coffee Group Regains Financial Profitability
Coffee giant Tchibo bounces back from the red. During the recent fiscal year, the organization managed to rack up a pre-tax and interest profit (EBIT) of 68 million euros, as disclosed by Tchibo Holding Maxingvest based in Hamburg. In contrast, the previous fiscal year saw a loss of 167 million euros. The company declines to share details about the tax-adjusted earnings.
Tchibo credited the turnaround to decreases in raw material, energy, and logistics costs, along with reduced marketing and distribution expenditures. Implemented strategies and structural changes during the summer have started yielding positive results. The company has streamlined its product offerings to suit various distribution channels – brick-and-mortar stores, distribution centers, and online sales. Tchibo has also honed in on its coffee business, with staff reductions totaling nearly 300 individuals being finalized.**
Revenue remained relatively steady at approximately 3.2 billion euros, representing a minor decrease compared to the previous year. Consumer goods sales performed subpar, largely due to a general downturn in demand. Along with coffee, Tchibo also deals in apparel, home goods, and home decor items.
However, the approximately 900 physical stores reported a sales growth. Customer visit frequency increased, and there was an uptick in coffee sales. Sales also expanded abroad. Tchibo exports coffee to over 60 nations and operates subsidiaries in various countries, such as Austria, Switzerland, and Poland.**
The Coffee group within Tchibo played a significant role in the company's turnaround, contributing to increased coffee sales both domestically and internationally. Following the implementation of strategic changes and cost-cutting measures, the Coffee group was able to reduce its expenditures and improve profitability.
