BOGOTA, Colombia – Procafecol S.A., the company that operates the Juan Valdez Café brand and coffee shops worlwide, reached the highest net profit -in its history.
For the third year in a row, the company’s profits were higher than the preceding years. This favorable outcome was the result of the company’s domestic commercialization strategy and international expansion initiatives.
By the end of the fiscal year 2014, Procafecol’s net income reached $2.4 million. This meant a 34% increase in local currency compared to the net income recorded during 2013.
The company’s operating income also experienced significant growth. By reaching a total of US$66 million, this figure increased 18% in domestic currency.
Procafecol´s EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) maintained a positive growth trend, reaching $6.8 million. This was a significant increase compared to the EBID recorded in 2013.
According to Hernán Mendez, CEO of Procafecol S.A, “The Juan Valdez® brand continues to grow and consolidate in its target markets, based on a solid business vision, commitment and determination. It is very gratifying for us to announce these positive results.”
During 2014, Procafecol paid more than $3.5 million to the National Coffee Fund in royalties for the use of the Juan Valdez brand.
These resources are used to finance public goods and development and welfare programs that benefit more than 500,000 Colombian coffee growing families. Since the launch of the brand in 2002, more than $20 million have been generated in brand royalties.
Among the most important accomplishments of Procafecol’s management was its brand expansion. By opening 32 new cafés in Colombia, the company broadened the presence of Juan Valdez, reaching presence in 28 Colombian cities.
Out of the 215 cafés that operate in Colombia, 99 are located in Bogota, 19 in Medellin, 16 in Cartagena, 11 in Bucaramanga, and 10 in Cali.
The International expansion of the operations was also significant. By the end of 2014, the Juan Valdez Cafés operating outside the country reached almost the 100, with 94 coffee shops, operating in 13 countries aside from Colombia.
The brand expanded into several new countries including Bolivia, El Salvador, South Korea and Malaysia. Parallel to the opening of new cafés, by the end of 2014, Juan Valdez was present in 3,500 supermarkets and grocery chains throughout 23 different countries.
Additionally, during 2014, the brand implemented new strategies to improve customer service and overall satisfaction with Premium Colombian coffee.
The “authentic experience” platform was one of these initiatives. The platform has three pillars of action and communication –awareness, pride and wisdom– and has already been implemented in 30 cafés in Colombia.
The initiative seeks to optimize the hospitality model through new architectural elements and significant shifts in the service model.
