Yesterday, the General Shareholders’ Meeting approved the Financial Statements of Luigi Lavazza S.p.A. and the Consolidated Financial Statements for the year ended 31 December 2007. The Group reported net revenues exceeding €1 billion (€1,043.6 million), up 12.3% compared to the previous year. The percentage of volume generated abroad was significant and rising: 38%. EBITDA was €177.0 million, EBITDA margin was 17%, and pre-tax profit reached €111.4 million, with a 10.7% ratio to revenues.
Consolidated profit was €68.5 million (6.6% of revenues), an increase compared to €64.3 million in 2006. The number of employees reached 3490 after the acquisitions were carried out in India.

The General Shareholders Meeting also appointed the new Board of Directors: Alberto Lavazza (formerly Vice President and CEO) was appointed President in place of Emilio Lavazza, who has been appointed Honorary Chairman. Giuseppe Lavazza was appointed Vice President, with marketing responsibilities. Gaetano Mele (formerly General Manager) was appointed Chief Executive Officer. Francesca, Marco, and Antonella Lavazza, as well as Tullio Toledo were confirmed as Board Members. Alessandro Lorenzi, Corporate Central Staff Director was also appointed as Board Member.

We are very satisfied with the 2007 results. The management’s strategic plan and commitment have allowed us to grow on both the Italian market (11.6%) and foreign markets (13.4%), stated the new President Alberto Lavazza. General Manager Gaetano Mele made a significant contribution and we are certain that as Chief Executive Officer for the next three years he will successfully continue down the path taken towards the Company’s internationalisation and steady growth of the Group, despite the increasingly complex and difficult competitive environment.

Gaetano Mele said: I thank the Lavazza family which continues to govern one of Italy's major food companies, and I am honoured by the confidence they have placed in me with this challenging responsibility, in light of the Company’s significant growth ambitions. We are determined to strengthen the company position in Italy, where Lavazza is already the leader in the retail market (with a 48% share), and expand abroad, especially in the emerging countries.

Two significant events occurred in 2007 that will ensure Lavazza's growth capacity going forward: the launch of the Lavazza capsule system called A modo mio in Italy, and the acquisition of Barista and Fresh & Honest in India. A modo mio is the new frontier in espresso coffee consumption at home: both machines and capsules are available through the retail channel, providing an increasingly better response to consumer demands. The two acquisitions in India have laid down the basis for ensuring Lavazza's presence in Asia.

In the first half 2008, raw materials prices increased sharply, now stabilising at an average increase of about 16%, added Gaetano Mele. On the consumption side, the market in mature countries is mostly stagnant, while growth in emerging countries shows signs of vitality. For this reason as well, we plan to focus on high growth-potential markets abroad. In early 2008, Lavazza finalised two acquisitions in Brazil: Café Grão Nobre a Rio de Janeiro and Tierra Brasil in São Paulo, two companies operating in the Ho.Re.Ca. sector. We now intend to continue with enthusiasm and courage down the path to acquisitions and consolidation abroad: in this era of globalisation of markets and internationalisation of companies, Lavazza will increasingly be the standard-bearer abroad of Italian taste and food quality, bringing to the world espresso coffee, the icon of Italian style.