The Italian appliance manufacturer says its coffee-focused strategy remains integral to the group's future success, with revenues increasing 8.4% in the first quarter of 2022 despite rising costs and political uncertainty in its key European market
De’Longhi’s Europen market recorded an overall 0.5% fall in revenues, attributed to ongoing geopolitical uncertainty | Photo credit: DeLonghi Group
De’Longhi Group has credited its coffee business for driving strong first quarter results, with the Italian domestic appliance manufacturer reporting total revenues rising 8.4% to €735.5m ($764m) and net profit of €50.6m ($52.5m).
Following the boom in at-home coffee consumption during the pandemic, De’Longhi has benefited from increased demand for its coffee machines, with its brands, including Kenwood, Braun and nutribullet, all profiting from a widened home market.
However, De’Longhi’s largest market, Europe, recorded an overall 0.5% fall in revenues to €454.5m ($472m), with the region weighed down by a 7.1% decline in North East Europe, which the company attributed to geopolitical uncertainty as a result of the ongoing war in Ukraine.
South West Europe, however, saw revenues rise 3.9%, driven by gains made in the German market.
In other regions, De’Longhi reported double-digit positive growth in the Middle East, India and Africa (13.8% to €59.4m) and the Asia Pacific regions (27.7% to €88.7m), and growth of 32.3% in the Americas (€132.9m), attributed to the development of its coffee business and an early sales season of portable air conditioners.
De’Longhi's coffee segment continued its solid growth trend, with strong sales in Europe, the USA and Asia. The company experienced a continued growth in sales from 2021, aided by the high level of turnover achieved in 2021 and the success of a global communication campaign that saw actor Brad Pitt
appointed Ambassador of the De’Longhi brand.
“We are very satisfied with the results of this first quarter, even more significant in light of the difficult comparison with the first quarter of 2021 which had recorded exceptional results with revenues growing by around 60% on a like-for-like basis,” said Massimo Garavaglia, De’Longhi Group CEO.
“We remain convinced that the strategy of focusing on the core categories – in particular the coffee one – of constant investment in products and our brands, of geographical development and of discipline in price management, remains the winning strategy for the creation of value in the medium and long term,” he added.
In July 2021, De’Longhi, which also owns super-automatic coffee machine maker Eversys
, reported half-year profits
had soared 319.5% to €180.8m, with annual revenues for last year reaching €3.2bn.
The De’Longhi Group is a leading provider in the domestic appliance business, with the De’Longhi, Kenwood, Braun and nutribullet brands sold in over 120 markets globally.