CAVIT, the leading Trento Cooperative’s profitability is excellent, net worth improves

CAVIT’s end of the year financial sheet has shown that turnover is growing ( the parent company’s), as well as its net worth, while the consolidated net result is stable, in spite of an obviously complicated economic situation. The overall turnover is slightly lower compared to the previous year, for the most part, due to internal reorganization. CAVIT is one of the leading Cooperatives in the Trento area, and in Italy. It covers 60% of the vineyard surface, counting 6.350 hectares managed by 5.250 winemakers, in addition to which it is one of the most virtuous Cooperatives in Italy, approved recently at the assembly in Trento, where Lorenzo Libera was reconfirmed president of the Group led by Enrico Zanoni, General Manager.
The consolidated turnover of the Cavit Group registered -5.2% decline, reaching 253.3 million euros, compared to 267.1 million euros in the previous financial year. “The 13.8 million euro reduction has been mainly attributable to the divestment process of Casa Girelli’s non-strategic activities (-18.2 million euros), starting with its incorporation, which will continue in the following financial year. The drop in volumes was partly offset by the positive performance of the Group's core activities”, a note explained and further emphasized that “the stability of the consolidated net result (4.9 million euros compared to 4.8 million euros in the previous year), in spite of a lower turnover, confirms the success of the strategic choices and the solidity of the operational management. It also emphasizes that disposing of Casa Girelli’s low-margin activities has contributed to preserving its overall profitability, keeping it in line with the strategic objectives established”. Beyond the numbers, conditioned by disposing of non-core activities, results of the CAVIT Group reveal significant growth at constant perimeters, and outstanding performances by Cesarini Sforza Trentodoc, Altemasi and Kessler. The turnover of the parent company Cavit SC reached 224.7 million euros, an 8.3% increase, which includes the contribution of incorporating Casa Girelli. Apart from this operation, organic growth is positive (+1.8%). The net financial position is around 22 million euros, and net equity is more than 120 million euros, up +6.1%. “Capital consolidation is especially important in the current market situation, as it guarantees the solidity the Group needs to face future challenges”. The Group has established a solid international position, as 75.7% of its turnover comes from exports, and 24.3% from the Italian market. “In the United States of America, the Group’s primary outlet market, CAVIT has demonstrated much more resilience in a generally declining market, performing better than the sector average, while consolidating its leadership in the Pinot Grigio segment, despite the progressive change in preferences of the new generations towards other types of alcoholic beverages. In this situation, product innovation has been confirmed the key element to respond to changes in demand. On European markets, even though there is a general slowdown in consumption, the CAVIT Group has registered moderate growth, and positive performances in the United Kingdom, thanks to the HORECA (hotels, restaurants, catering) channel, recovery in Germany in mass retail trade, and a constant trend in the Netherlands. Other European countries are growing as well, due to better distribution across the various sales channels and expanding the range of products sold. Encouraging signs for the sparkling wine sector are coming from Asian markets, especially South Korea and Japan, while in China, though there is a sharp decline on the market, promising partnerships have been launched with two national airlines”.
Observing individual channels, CAVIT highlights its multi-channel nature confirming its presence in the HORECA channel, in mass retail trade and online. “In Italy, the market is substantially stable in value (+0.9%), but declining in volumes (-3.9%), while the Group”, CAVIT explained, “has registered a positive performance on the modern channel, driven by Mastri Vernacoli and Cesarini Sforza’s strategic lines of sparkling wines; the HORECA channel is showing signs of consolidation, thanks to the constant presence of a dedicated sales force. E-commerce, following dynamic growth in the pandemic period, is registering a physiological adjustment, in line with generally rebalancing the channel. These results were achieved thanks also to product innovation. Furthermore, CAVIT explained, “sustained growth of the Group's sparkling wine lines continues, confirming their resilience in a complicated market, and boasting a complete portfolio that ranges from Metodo Classico to Charmat and the brands, Altemasi Trentodoc, Cesarini Sforza, Kessler Sekt and Spumante Müller di Cavit. The Altemasi winery has undergone considerable work to expand its spaces, re-insulating the roof and creating a new multifunctional area. Further, and very importantly, the design phase to expand the sparkling wine cellar has begun, while the work phase will begin in the first half of 2025. This will allow us to increase production and storage capacity, while optimizing the logistics and energy efficiency of the production cycle”.
CAVIT has also confirmed its commitment to sustainability, according to the guidelines of the ISO 14.001 environmental management system. They have adopted a “holistic” approach that involves a community of more than 5.250 winemakers, also thanks to the “PICA” (Integrated Agricultural mapping platform). The platform is “an advanced tool used for integrated and precision viticulture, supporting the contributing wineries and the winemaking members on a daily basis, through digital solutions accessible on any device”. And, under the direction of CAVIT’s agronomic and oenological team, it provides consultancy and technical assistance, from the winemakers to the winemaking cooperative teams. The Group continues to invest in multi-year research programs in collaboration with the Edmund Mach Foundation and the Bruno Kessler Foundation, in many areas, as well as in communication and social media.
“The 2023-2024 financial year has confirmed the the CAVIT Group’s solidity, which, in a complicated market situation, has successfully completed the incorporation of Casa Girelli, maintaining stable economic results and further strengthening its capital structure. Geographical and channel diversification, combined with the effective strategic choices and the constant commitment towards innovation and sustainability, demonstrate the Group’s ability to adapt to market changes, while at the same time, preserving the founding values of cooperation and the link with the Trentino Region”. “I am honored to continue my commitment at the helm of the CAVIT Group, and am especially satisfied with the results achieved that have allowed us, in this financial year as well, to guarantee adequate remuneration to our members. The cooperative model continues to be a winning one that combines the valorization of the winemakers’ work with modern and efficient entrepreneurial management. The results confirm the solidity of a system that makes collaboration and sharing values its strength”, Lorenzo Libera, president of the Cavit Group, commented. “In this complicated global economic context, characterized by slowdown and uncertainty, the CAVIT Group has demonstrated great adaptability and strategic vision. The incorporation of Casa Girelli was completed respecting the workforce and without compromising the company’s solidity, as the positive results of the core activities and the capital strengthening have demonstrated. This performance has confirmed the validity of the strategic choices made that prioritize generating value and consolidating the capital and financial structure, rather than mere growth in turnover”, Enrico Zanoni, General Manager of the Cavit Group, concluded.