Friday 12 July 2024
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De’Longhi reports first quarter results with revenues up 8.4% on year

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TREVISO, Italy – The Board of Directors of De’Longhi S.p.A. has approved the consolidated results of the first quarter of 2017.

The company’s CEO Fabio de’ Longhi stated:“we are pleased with the start of the year, especially the acceleration in organic growth, which shows the initial benefits of the investment plan in advertising and promotion, which we expect will continue to support future growth.

The positive volume trend allowed operating leverage to contribute to expand the industrial margin and to compensate for higher media investments.

The first quarter confirms our confidence in reaching 2017 targets: organic revenue growth at “mid-single-digit” rates and an improvement of Ebitda in absolute terms”.

Results summary

Revenues in the first quarter were € 390.5 million, up by +8.4% as compared with € 360.3 million in the first quarter of 2016 and up by +6.3% in organic terms. The acceleration of volume growth, with a positive impact on profitability through operating leverage, allowed for an improvement of the net industrial margin and compensated for, at Ebitda level, higher supply chain and advertising and promotion costs, the latter part of an investment plan to support future growth.

Net industrial margin reached € 190.2 million (48.7% of revenues), improving from € 184.3 million of the first quarter of 2016 (51.1% of revenues); at constant perimeter, net industrial margin would have been equal to 49.6% of revenues;

Ebitda was about stable, at € 51.4 million (13.2% of revenues), compared with € 51.5 million of the previous year (14.3% of revenues);

Operating income (Ebit) was € 38.5 million, 9.8% as percentage of revenues, compared with € 39.4 million in the first quarter of 2016 (10.9% of revenues);

Financial expenses were slightly down and stood at € 6.2 million from € 6.6 million in the first quarter of 2016;

Net income pertaining to the Group, finally, was equal to € 25.1 million, improving from € 24.8 million of the previous year and equal to 6.4% of revenues.

Regarding the balance sheet, the net financial position was positive for € 321.9 million, improving by € 14.3 million compared with year-end 2016.

With an increase of € 25.8 million as against the end of 2016, the bank financial position, positive as well, stood at € 333.3 million; over the past 12 months, the bank financial position recorded an improvement of € 102.7 million.

Net working capital stood at € 250.5 million (13.4% of revenues) slightly increasing as compared with March 31, 2016 (€ 246.4 million, equal to 13.1% of revenues); at constant perimeter, NWC as of 31 March 2017 would have been equal to 12.7%.

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