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DE’LONGHI – Group continues to advance along a positive trajectory

Espresso coffee makers sales boosted by fully-automatic machines

TREVISO, Italy – De’Longhi S.p.A.’s Board of Directors approved in Treviso, on November 11th 2014 the Group consolidated results as of September 30th, 2014.

Despite a difficult market environment, the Group continued to advance along a positive trajectory, protecting and increasing its market shares, also thanks to a strong commitment to investing for medium-long term growth.

In particular during the third quarter there was an increased investment in advertising and promotions (A&P) as well as in research and development (R&D) of about € 8.0 million compared to Q3 2013, in order to support the launch of new products, among which the new “low-oil fryer/multi-cooker” MultiFry and the new multi-beverage machine “Jovia” DolceGusto, both under the De’Longhi brand, or the new “Chef Sense” stand mixers, branded Kenwood.

The third quarter – July 1st – September 30th 2014

  • At constant exchange rates and excluding hedging, revenues were € 392.3 million, up 8.4% from € 361.9 million in 2013, while EBITDA stood at € 51.1 million (13.0% of revenues) versus € 48.6 million in 2013 (13.4% of revenues);
  • On a reported basis revenues were € 386.8 million (+6.4%) up from € 363.4 million in 2013, while EBITDA reached € 49.4 million (12.8% of revenues) versus € 51.2 million (14.1% margin);
  • EBIT stood at € 38.0 million (9.8% margin), from € 40.9 million (11.2% margin) in 2013;
  • Net income was € 21.2 million, equivalent to a 5.5% margin on revenues, versus € 25.3 million (6.9% of revenues).

The nine months – January 1st – September 30th 2014

  • At constant exchange rates and excluding hedging, revenues were € 1,121.3 million, up 9.6% from € 1,023.5 million in 2013, while EBITDA reached € 146.8 million (13.1% of revenues) from € 128.0 million in 2013 (12.5% margin);
  • On a reported basis revenues were € 1,086.9 million, up 6.0% from € 1,025.7 million in 2013, while EBITDA was € 136.6 million (12.6% of revenues) compared to € 133.6 million (13.0% of revenues) in 2013;
  • EBIT reached € 103.2 million (9.5% of revenues), from € 102.2 million (10.0% margin) in 2013;
  • Net income equaled € 54.2 million, equivalent to a 5.0% margin, from € 57.0 million in 2013 (5.6% margin).

Looking at the contribution of the different product families, there was a strong revenues performance for food preparation appliances, espresso coffee makers as well as ironing products, also thanks to the Braun brand.

With regards to sales of kitchen and food preparation appliances, Kenwood-branded kitchen machines were very strong, alongside with Braun-branded products; also fryers were very positive, thanks to the launch of the new “low-oil fryer / multi-cooker” MultiFry, under the De’Longhi brand.

Espresso coffee makers sales increased substantially, driven by fully-automatic machines, by the traditional “pump-machines”, by the Nespresso “Lattissima” range as well as by the new, internally- manufactured, “Jovia” DolceGusto.