The Italian coffee machine and appliance manufacturer says 2022 group sales were hit by squeezed consumer spending in Europe, but posted stronger sales globally, particularly for its Eversys business
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De’Longhi hailed the ‘brilliant performance of coffee’ during the first half of 2022 | Photo credit: Dylan Calluy
De’Longhi has cited the current ‘tough geopolitical’ environment in Europe and ‘unfavourable inflation dynamics’ as negatively impacting its 2022 revenues.
Reporting its full-year results, the Treviso-based company said group sales decreased 2% year-on-year in 2022 to €3.2bn ($3.4bn) as consumer confidence and disposable income fell.
Regionally, sales in Europe fell 10% last year to €1.9bn ($2bn). However, revenues in the Middle East (€196m), the Americas (€624m) and Asia Pacific (€464m) all increased over the last 12 months, by 8%, 11% and 16% respectively.
Despite lower group sales, De’Longhi hailed the ‘brilliant performance of coffee’ during the first half of the year and the strong growth trend of professional coffee machines.
Swiss super-automatic espresso machine maker Eversys, which De'Longhi fully acquired in May 2021, saw total turnover for its professional coffee machines double compared to 2021.
Sierre-based Eversys is seeking to build on its strong sales performance in 2023, opening new offices in the UAE and Singapore to better serve developing hospitality markets across Southeast Asia and the Middle East.
Additionally, Eversys is expanding its Sierre factory to manufacture a new automated cold brew coffee machine for a ‘significant’ coffee chain reported to be Starbucks, with products delivered to the US from the start of 2024.
“I believe that the result achieved in terms of revenues in 2022 is to be assessed positively in light of the numerous challenges and growing difficulties that the group has been facing, such as the dramatic geopolitical evolution and inflationary dynamics that have inevitably deteriorated consumer confidence and spending capacity. Nevertheless, the group was able to maintain a level of sales well above €3bn, thanks to the strengthening of investments in communication to support our brands, the growth of the coffee sector and the diversification of our international presence,” said Fabio de’ Longhi, CEO, De’Longhi Group.
De’Longhi said it anticipates 2023 trading will continue to be impacted by macroeconomic and geopolitical factors arising from the war in Ukraine and rising inflation.
The Italian coffee machine and appliance manufacturer has forecast lower sales than 2022, but expects a recovery in the second half of the year.
In January 2023, De’Longhi promoted Chief Operating and Technology Officer Nicola Serafin to the new position of General Manager, who will take responsibility for operational management on a global level.
The Italian coffee machine and appliance manufacturer said Serafin’s appointment is an essential step in guaranteeing De’Longhi’s long term growth and profitability.