The Italian coffee equipment and appliance manufacturer has hailed the strength of its Eversys and La Marzocco professional coffee business after posting strong six-month sales growth globally
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A De’Longhi Rivelia Automatic Compact Bean to Cup Coffee Machine | Photo credit: De’Longhi Group
Strong professional and domestic coffee machine sales have boosted De’Longhi Group’s half-year earnings.
Reporting on the six months to 30 June 2024, the Italian appliance group posted revenues of €1.42bn ($1.55bn), 10.3% higher than a year ago, with adjusted EBITDA up 14.4% to €204m ($222m).
In a statement, De’Longhi Group CEO Fabio de’Longhi hailed the group’s increased market share in the home coffee machine segment and stronger profitability following the $1.4bn consolidation of La Marzocco and Eversys
into a single business unit.
Coffee machines generate more than 60% of De’Longhi’s total revenues alongside a portfolio that also includes the Kenwood, Braun, Ariete and Nutribullet home appliance brands.
“The evolution of turnover, an improvement in the product mix and careful cost management have allowed us to significantly improve the margin profile at constant perimeter, further increasing the Group's profitability with the consolidation of La Marzocco.
“In the home coffee machine segment, we were able to further increase our market share, taking advantage of a structurally expanding reference sector,” de’Longhi said.
De’Longhi’s core European business saw revenues rise year-on-year to €874.2m ($954.4m), with strong momentum noted in Switzerland, Austria and the Iberian Peninsula.
The Italian coffee and appliance manufacturer also credited its consolidated professional coffee business as boosting sales in the Americas and Asia.
The strong half-year and quarterly results mark a welcome turnaround for De’Longhi Group, which
a year ago saw profits fall more than 10% amid weakened consumer confidence in Europe and the €56m exit from its US mobile air conditioning business.
Following the results, De’Longhi Group is forecasting 9%-11% full year revenue growth on 2023 sales of €3.07bn, with EBITDA in the range of €500m-€530m ($546-$579m)