In This Article:
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Revenue: EUR806 million in Q3, up 14% year-over-year.
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Net Industrial Margin: EUR416 million, 51.6% of revenues, up from 49% in 2023.
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EBITDA Adjusted: EUR131 million, 16.3% of revenues, compared to 14.9% the previous year.
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Net Financial Position: Positive EUR266 million at the end of the quarter.
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Free Cash Flow: EUR372 million in the last 12 months, EUR36 million in the last 9 months.
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Home Coffee Machines Turnover: Increased at a low teens rate.
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Kenwood Kitchen Machines Growth: Mid-teens rate increase in the period.
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Adjusted EBITDA Full Year Guidance: Revised to EUR440 million - EUR550 million.
Release Date: November 12, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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De'Longhi SpA (DELHF) reported a 14% increase in group revenue for the third quarter, driven by the consolidation of La Marzocco and strong performance in the Household business.
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The company has successfully increased operating results at a double rate of sales growth, attributed to perimeter expansion and stabilization of industrial costs.
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De'Longhi SpA (DELHF) has launched several innovative products, including the Rivelia and Magnifica Evo Next, which have received design awards and are expected to drive further growth.
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The company ended the quarter with a positive net financial position of EUR266 million, indicating strong cash flow management.
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De'Longhi SpA (DELHF) has revised its full-year guidance, raising expected topline growth to 11% to 12%, reflecting confidence in continued business expansion.
Negative Points
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The comfort sector experienced a negative performance in the quarter, although it had a limited impact on overall group performance.
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Eversys, part of the professional coffee segment, showed a double-digit decline due to a challenging market environment in China.
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Logistics costs remain higher than last year, although they are easing compared to the first half of the year.
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The geopolitical context poses challenges, particularly in the MEIA region, which could impact future growth.
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The company faces potential tariff risks in the US market, which could affect products sourced from China, although contingency plans are in place.
Q & A Highlights
Q: Can you provide insights on the expected margin evolution for Q4, particularly regarding advertising and promotion (A&P) expenses and gross margin? Also, how is Eversys performing, and what is the status of the project with Starbucks? A: We expect strong margins in Q4, similar to Q3, benefiting from cost reductions and improved mix. A&P investments will continue to be higher than last year, but at a lower rate than Q3. La Marzocco contributes positively to margins. Eversys has been weak, with a double-digit decline expected to continue, but we remain optimistic about future developments and the Starbucks project, which is expected to roll out approximately 500 units in the second half of next year.