De'Longhi Sees Surge in Sales with Eversys and La Marzocco Boost

WriterRachel Martin

13 May 2024

De'Longhi Sees Surge in Sales with Eversys and La Marzocco Boost

Key Takeaways

  • De’Longhi’s consolidation of Eversys and La Marzocco leads to a 10% boost in group turnover.
  • First quarter revenues hit €658.8m, marking a 9.4% increase from the previous year.
  • Coffee machines, accounting for 60% of total revenues, experienced significant growth, particularly in fully automatic and professional units.

De’Longhi, the renowned Italian coffee machine and home appliance manufacturer, has reported a robust uptick in sales for the first quarter, following the recent $1.4bn consolidation of its Eversys and La Marzocco businesses. This strategic move has notably propelled the group's turnover by 10%, with first quarter revenues soaring to €658.8m, up 9.4% from the same period last year. Adjusted EBITDA also saw a healthy increase, reaching €93.8m, or 14.2% of group revenues, a jump from 12.3% in 2023.

The surge in sales is largely attributed to the coffee segment, which represents around 60% of the total group revenues. This sector saw 'significant' growth in the low teens rate, driven primarily by the expansion of household fully automatic machines and the newly consolidated professional coffee machines unit. The Treviso-based company also highlighted the normalization of post-pandemic consumption and a restored level of normality for stocks at the distribution level as key factors behind the strong first-quarter sales.

Fabio De’Longhi, CEO of De’Longhi Group, noted, "The persistent growth of the coffee business, as well as the recovery of the 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." He added that these growth dynamics, coupled with careful cost management and targeted investment expansion, have reinforced the improvement in profitability levels.

This positive performance comes as a relief after a challenging 2023, where the company saw a 2.7% decline in full-year revenues due to slower domestic appliance sales, impacted by lower consumer confidence across many markets and Red Sea shipping disruptions. However, revenues from Europe, De’Longhi’s largest market, saw an uptick, reaching €424.3m, up from €418.1 a year ago, with sales of fully automatic coffee machines being a significant growth driver.

In the Americas, the consolidation of La Marzocco and the expansion of Nutribullet products contributed to a 10% revenue growth, reaching €105.7m. Meanwhile, the Asia Pacific region maintained its sales levels, in line with 2023, despite the Middle East, India, and Africa (MEIA) revenues being negatively impacted by a complex macroeconomic and geopolitical context.

Looking ahead, De’Longhi remains optimistic, reinforcing guidance of €500m-€530m in adjusted EBITDA for 2024. The company’s strategic consolidations and focus on high-growth segments such as coffee machines position it well for continued success in the competitive home appliance market.

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Rachel Martin
Rachel Martin
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Rachel Martin is an acclaimed Coffee Makers News Writer, celebrated for her in-depth reviews and barista-level expertise. With an innate passion for coffee culture and a knack for technical detail, Rachel's articles serve as a beacon for coffee enthusiasts navigating the world of home brewing.

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