Massimo Zanetti Beverage Group S.p.A. reported consolidated earnings results for the six months ended June 30, 2018. For the period, the company reported revenue of EUR 434,411,000 against EUR 475,563,000 a year ago. EBITDA was EUR 32,050,000 against EUR 29,095,000 a year ago. Operating profit was EUR 14,072,000 against EUR 10,809,000 a year ago. Profit before tax was EUR 10,450,000 against EUR 7,225,000 a year ago. Profit for the period attributable to owners of the parent was EUR 7,092,000 or EUR 0.21 per basic and diluted share against EUR 4,296,000 or EUR 0.13 per basic and diluted share a year ago. Net cash generated from operating activities was EUR 20,112,000 against net cash used in operating activities of EUR 405,000 a year ago. Purchase of property, plant and equipment was EUR 12,960,000 against EUR 19,183,000 a year ago. Purchase of intangible assets was EUR 949,000 against EUR 578,000 a year ago. Free cash flow was EUR 9,599,000 against negative free cash flow of EUR 16,054,000 a year ago. Net debt amounting to EUR 190.7 million is stable compared to EUR 191.0 million at December 31, 2017. The increase of EBITDA is due to the increase of gross profit partially offset by the negative impact of exchange rate fluctuations and the slight increase of operating costs on a comparable basis. Revenue, on a comparable basis, decreased 3.0% compared to the previous year mainly due to, the decrease in roasted coffee sales volumes, the slight decrease of roasted coffee sales price resulting from the decrease in the average purchase price of green coffee which was partially offset by the positive effects of a different mix in the sales channels in 2018 and 2017. Overall, these items resulted in a decrease in revenue of 1.4% compared to the first half of 2017.

The company provided earnings guidance for the full year of fiscal 2018. For the period, the company expects revenue on a comparable basis substantially in line with 2017, EBITDA adjusted increase of approximately 5.0% - 8.0% and a reduction in net debt to below EUR 180 million.