The Italian coffee machine and home appliance manufacturer saw its recently consolidated Eversys and La Marzocco segment boost group turnover by 10%
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Photo credit: Jose Jovena
De’Longhi has reported positive first quarter sales a month after finalising the
$1.4bn consolidation of its Eversys and La Marzocco businesses.
The Italian appliance manufacturer posted revenues of €658.8m ($711.8m) for the quarter ended 31 March 2024, up 9.4% from the same period a year ago. Adjusted EBITDA reached €93.8m ($101.3m), equal to 14.2% of group revenues and up from 12.3% in 2023.
Coffee machines, which account for around 60% of total group revenues, ‘grew significantly’ in the quarter at a low teens rate, driven by the expansion of household fully automatic machines and the and the newly consolidated professional coffee machines unit boosting group turnover by 10%.
The Treviso-based company also credited the normalisation of post-pandemic consumption and ‘a restored level of normality’ for stocks at the distribution level for driving strong first quarter sales.
“The persistent growth of the coffee business, as well as the recovery of nutrition and food preparation category, led to an organic increase in turnover at constant currencies in the high single digits for the third consecutive quarter,” said De’Longhi Group, CEO, Fabio De’Longhi.
“Those growth dynamics, coupled with careful cost management and targeted investment expansion, have reinforced the improvement in the level of profitability,” De’Longhi added.
Higher revenues in key markets globally will be welcome news for De’Longhi, which posted a 2.7% decline in full-year 2023 revenues following
slower domestic appliance sales amid lower consumer confidence in many markets and Red Sea shipping disruption.
Revenues from Europe, De’Longhi’s largest market, reached €424.3m ($458.4m), up from €418.1 ($451.7) a year ago, with sales of fully automatic coffee machines a key driver of growth.
In the Americas, De’Longhi said the consolidation of its La Marzocco business and the expansion of Nutribullet products drove 10% revenues growth to €105.7m ($114.2m). Meanwhile, accelerated growth in Australia and New Zealand enabled Asia Pacific sales to stay ‘in line’ with 2023 levels, with Middle East, India and Africa (MEIA) revenues negatively impacted by a ‘complex macroeconomic and geopolitical context.’
The positive first quarter reinforced guidance of €500m-€530m ($540-$572m) adjusted EBITDA for 2024, De’Longhi added.