- Tchibo projected to revert to profitability by 2023.
Tchibo Bounces Back to Profitability. For the financial year that recently concluded, Tchibo Holding Maxingvest, based in Hamburg, reported an earnings before interest and taxes (EBIT) of 68 million euros. In contrast, the previous fiscal year (2022) saw a loss of 167 million euros. The company remains tight-lipped about the post-tax earnings.
Tchibo credits this turnaround to a decrease in expenses related to raw materials, energy, and logistics, as well as reduced marketing and distribution costs. Furthermore, the initiatives and structural changes implemented in the summer began to show results. The company adjusted its product offerings to better suit different sales channels - physical stores, depots, and online sales. Tchibo intentionally narrowed its focus to its coffee business, resulting in the elimination of nearly 300 positions.
Revenue hovered around the 3.2 billion euro mark, a dip of 1% compared to the previous year. The consumer goods sector struggled, mainly due to a widespread decrease in demand. Beyond coffee, Tchibo also offers clothing, household items, and home decorations.
However, the company's approximately 900 brick-and-mortar stores saw an uptick in sales. Customers visited more frequently, leading to an increase in coffee sales. Overseas sales also experienced a growth spurt. Tchibo exports coffee to over 60 countries and has operations in various nations, including Austria, Switzerland, and Poland.
Tchibo's earnings before interest and taxes (EBIT) significantly improved, as the company reported a profit of 68 million euros for the recent financial year, contrasting the 167 million euros loss in the previous year (2022). Due to Tchibo's successful strategies, such as reducing expenses and focusing on its coffee business, the company's popular Tchibo-branded coffee continues to be sold in over 900 physical stores and exported to over 60 countries worldwide.
