TREVISO, Italy – The De’ Longhi Group Spa released from its headquarters in Treviso the results for the fourth quarter of 2023, which recorded a strong growth, and the preliminary results for the last year, which are slightly down by 2.7% compared to 2022.
In detail, according to the received statement, revenues reached €1,076.8 million in the fourth quarter, growing by 4.6% (+7.9% at constant exchange rates). Over the 12 months, revenues amounted to €3,074.6 million, slightly decreasing by 2.7% (-0.2% at constant exchange rates) compared to 2022.
The CEO Fabio de’ Longhi has commented:
“During the year, we were able to significantly improve the Group’s growth, profitability, and cash generation. These achievements were the results of strict cost control, continuing brand development and a careful investment strategy, in the context of gradual post-pandemic normalization.
In particular, in the second part of 2023, the continuos expansion of coffee machines and the path back to growth of the nutrition and food preparation sector, the latter supported mainly by the development of both the Nutribullet and Braun brands, allowed the Group to achieve organic growth at a high single digit rate in the last six months.
We believe that the dynamics highlighted in most recent quarters allow us to be cautiously optimistic about 2024, estimating revenues increase at a low to mid-single digit growth rate for the current perimeter. Regarding 2023 margins, in light of the gradual recovery of profitability during the year and the favourable turnover mix highlighted in the fouth quarter, we estimate a result in the upper range of the guidance released, thus increasing the adjusted Ebitda 2023 forecast at around 440 million euros”.
De’ Longhi Group clarified that the preliminary revenue data reported above have not been reviewed.
The complete consolidated results for the year 2023 will be submitted to the Board of Directors for approval at the meeting scheduled for March 12, 2024.
2023 revenues by geography and product line
The Group ended 2023 with revenues slightly lower than the previous year, fully achieving the guidance released for the period. The first half of the year ended with a partial decline in turnover, primarily caused by some temporary and exceptional factors that affected the start of the year. These factors included the challenging comparison with the previous first quarters of the last two years, the reduction in stock levels held by retailers and the discontinuity in mobile air conditioning business on the American market.
In the second half of the year, the Group achieved organic growth at a high single digit rate, showing a significant progression and expansion of the underlying trends since the second quarter in both in coffee, and the nutrition and food preparation sectors.
Over the past twelve months, geographical expansion was affected by the temporary factors mentioned earlier, however, in the fourth quarter, the Group experienced a boost in organic growth in most of its regions (with the exception of the America area due to some temprary factors).
In more details:
- South-Western Europe achieved a partial decline in turnover in the twelve months, however, the area showed high-single digit organic growth in the second half of the year; In the fourth quarter, the major markets experienced strong growth, with Germany and France showing a turnover in the high teens pace;
- North-Eastern Europe recorded a substantial positive trend in 2023, with additional progress made in the last few months of the year thanks to a significant expansion of the core product categories in the main markets;
- The MEIA area achieved organic growth in the low teens during the fourth quarter, however, in the twelve months the area remains in negative territory primarily as a result of challenging macroeconomic conditions;
- In 2023 the result of the Americas area was significantly affected by the impact of the exit from the mobile air conditioning business, net of which the turnover would have been slighlty lower than the previous year; it is worth mentioning that the fourth quarter saw a slowdown primarily due to a decline in capsule machines and negative currency impact;
- A rendering of a De’Longhi coffee grinder (image provided)
- Finally, the Asia Pacific region achieved an expansion in turnover in organic terms over the twelve months, thanks to an acceleration in the second half of the year, which led to mid-single-digit organic growth in the fourth quarter.
In the terms of product segments:
- the domestic coffee machine sector highlighted a turnover in line with the previous year, with growth reaching a mid-single-digit rate in the fouth quarter. This was supported specifically by an acceleration at a low teens pace in the super-automatic machines category, thanks to the success of the new products recently launched on the market;
- the nutrition and food preparation segment highlighted positive dynamics in both quartes of the second half of the year, which brings the home care category (floor-care and ironing) into positive territory in the twelve months; the trend in comfort (portable heating and air conditioning) in 2023 was strongly influenced by the Group’s choice to exit the American portable air conditioner market;
- finally, we highlight the significant growth of Eversys’ professional coffee machines, which maintained a consistent expansion trend throughout the year, resulting in a turnover growth of more than 30% in 2023.
