Illycaffè CEO Cristina Scocchia revealed that the company is facing a "perfect storm" due to an extraordinary increase in green coffee prices. In 2025, the average cost of green coffee was 368 cents per pound, tripling the historical average since 1972 and representing over a 50% increase from 2024. This, combined with rising logistics costs caused by the crisis in the Strait of Hormuz, where container costs have increased by $300-$400 in two months, is putting significant pressure on the company's margins. While Illycaffè has implemented some price adjustments, they have absorbed part of the cost increases and currently have no further price hikes planned for 2026, though this could change if the international situation deteriorates further.
Despite these challenges, Illycaffè demonstrated strong performance, closing last year with $700 million in revenue, a 12% growth at constant exchange rates. Over the past four years, the company has grown by 40%, from $500 million to $700 million. Scocchia set an ambitious goal of double-digit profitability growth for 2026. The company is also expanding its production capabilities, with a $130 million investment in its Trieste facility, including a new roasting facility expected to double capacity by summer. Additionally, Illycaffè will begin producing 15-20% of its US sales in the United States starting in early 2027, having identified a strategic partner for this initiative.
Regarding an IPO, both CEO Cristina Scocchia and President Andrea Illy confirmed it remains a strategic option and a goal, but there is no defined timeline. Scocchia stated that 2026 is not a suitable window for an IPO due to high green coffee prices and energy costs, and that the company has no urgency to list. While there is hope for 2027 or 2028, the decision will depend on favorable macroeconomic conditions and market opportunities. Illycaffè is preparing for a potential listing but emphasized that no decisions have been taken regarding timing or the financial market for the IPO, although the US market remains a possibility.
