MILAN (Reuters), – Lavazza, an Italian coffee company reported Wednesday that it expects a difficult 2022 because of rising raw material prices after reporting a significant increase in profit for 2021.

According to the family-owned business, it has decided to stop all activities in Russia. It also must temporarily suspend distribution in Ukraine.

Lavazza indicated that 2022 would be “extremely complex and challenging”, due to an increase in raw material prices.

“First and foremost green coffee, but also packaging, energy, logistics – and the risks deriving from the dramatic current geopolitical situation,” Chief Executive Antonio Baravalle said.

Turin-based experts said that the price rises were due to supply chain problems worldwide and weather damage.

EBITDA, or earnings before interest, taxes and depreciation (EBITDA), was $337.93m in 2021. That’s an increase of 23.3% from 2020.

The recovery of the “outof home” channel following the COVID-19 slowdown, which saw lockdowns keep people in their homes, helped to increase revenues by 11% to 2.33 billion euros.

($1 = 0.9233 euros)