Mikel Coffee Company had become the absolute trend in coffee making during the difficult years of the economic crisis. The chain started by Lefteris Kyriakakis from Larissa developed at a rapid pace during the most difficult decade for the Greek economy, mainly through franchising, although it maintained several privately owned stores in its network, taking care to cultivate the myth of the... secret recipe of the chain's coffees.
Of course, since the coffee market has proven on many occasions that new trends, as dynamic as they are at the beginning, just as quickly hit the brakes, Mikel, in recent years, has had to find those growth channels to maintain its position and return to profitability since for the last three years it has recorded losses on the bottom line of its balance sheet.
According to the recently published financial statements concerning the fiscal year 2022, the company had shown a turnover increase of 16.57% compared to 2021, reaching 18.84 million euros.
However, the cost of sales increased by 20.45%, to 13.67 million euros, with the result that EBITDA fell by 14.34% compared to 2021, to 1.18 million euros, and the net result shows a loss of 159,000 euros (from approximately 173,000 euros in 2021). Despite all this, the management decided to give a dividend to the shareholders in the total amount of 250,000 euros.
The negative result is also allegedly connected to the restructuring of the network of corporate stores in Athens, Thessaloniki, Larissa and Trikala. Within one year, they were reduced from 46 to 37 (38 if the canteen on the TRAINOSE "Silver Arrow" train is included), absorbing several losses!
However, information indicates that in 2023, the year the company completed 15 years of life, the turnover marginally increased.
The turn abroad
In a way, the strategic decision was made that the answer to the pressures of the Greek market, where the competition from old and new players is intensifying, would be extroversion.
Basically, the expansion into new markets through partners - master franchisees. In this way, 92 stores have been developed in 18 foreign countries.
The largest network, 33 stores, operates in Cyprus, followed by Turkey with 23, Saudi Arabia with 7, the United Arab Emirates with 4, the same as Bulgaria, and the United Kingdom with 3. They operate 2 in the USA (Boston and Astoria), Australia (Sydney), North Macedonia (Skopje), Jordan, and Canada.
Information indicates that the company looks favourably in the case of Iberia, where various moves are being made. But it will probably try even harder given that foreign sales for 2022 were almost stagnant at around 1.7 million euros.
It should be noted that more than 350 Mikel stores are operating worldwide today.
Mikel's management foresees further development of the company through new commercial agreements that are expected to strengthen both the increase in turnover and the reduction of all expenses with the ultimate aim of improving the results in the next management years.
The company's total equity at the end of the year was 3.91 million euros. Also, the total short-term liabilities reach 12 million euros.
Stelios Morfidis is a columnist for New Money.
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