The Italian appliance group said combining La Marzocco and Eversys into a single business unit in January 2024 boosted third quarter revenues by €62m ($66m)
De’Longhi achieved 14% year-on-year third quarter revenue growth to €805.5m ($852m) | Photo credit: Vlad Kutepov
De’Longhi has sustained robust coffee segment sales growth in the third quarter, driven by greater demand for professional coffee machines in the US and Canada.
Reporting on the three months to 30 September 2024, the Italian appliance group posted revenues of €805.5m ($852m), 14% higher than a year ago, with adjusted EBITDA up 25% to €131.1m ($138.6m).
In a press release, De’Longhi said the consolidation of La Marzocco and Eversys into a single business unit in January 2024 boosted group revenues by €62m ($66m) in the third quarter and approximately €149m ($157.6m) during the first nine months of 2024.
The tie-up is proving particularly lucrative in De’Longhi’s key Americas growth market. Total third quarter revenues in the US and Canada grew 23.5% year-on-year to €169.6m ($178.7m) – representing 21% of the group’s total revenues during the period.
De’Longhi manufactures and distributes De’Longhi and Braun household appliances in North America, including a range of espresso and drip coffee machines. The region contributed 18% of De’Longhi’s total 2023 sales.
Treviso-based De’Longhi also reported 7.4% year-on-year sales growth in Europe, its largest regional reporting segment by sales at €475.6m ($503m). The Italian appliance group highlighted the strong performance of its fully automatic coffee machine division in Switzerland, Austria and the Iberian Peninsula as strong contributors to revenues during the period.
De’Longhi’s home coffee machine division achieved low double-digit sales growth in the third quarter, driven by increased sales of home espresso and coffee capsule machines. However, sales of manual and drip coffee machines fell year-on-year.
“The group improves on the excellent performance of the results of the last quarters, with a 14% increase in turnover that benefited from both the consolidation of La Marzocco and an acceleration in the household segment. In professional coffee, La Marzocco confirmed its market leadership, further developing its business and strengthening its presence in the luxury household with targeted partnership initiatives, including the creation of a line of exclusive ‘Porsche X La Marzocco’ products,” said Fabio de’ Longhi, CEO, De’Longhi Group.
Coffee equipment generates 62% of De’Longhi’s total revenues. The business also trades in the nutrition, food preparation, air conditioning and homecare sectors via its Kenwood, Nutribullet, Braun and Ariete brands.