| Italy

Falling domestic coffee machine sales dent De’Longhi’s first quarter revenues

The Italian coffee machine and appliance manufacturer reported lower revenues across Europe, the MEIA and the Americas amid weaker at-home coffee machine sales but highlighted stronger professional segment sales led by Swiss super automatic espresso machine maker Eversys

European revenues fell 18% in the period to €373.2m ($407m) | Photo credit: Dylan Calluy


De’Longhi has reported a decline for its consumer coffee segment following heightened sales during the pandemic but said the ‘strong positive trend’ of its Eversys brand highlights growth potential for its professional coffee category. 

The Italian coffee machine and appliance manufacturer’s group revenues fell 18% to €602.4m ($658m) in the three months ended 31 March 2023 as a result of an ‘unfavourable’ geopolitical climate in Europe and a decrease in at-home coffee machine sales. 

European revenues, which comprise 62% of De’Longhi’s total sales, fell 18% in the period to €373.2m ($407m). The Italian coffee machine and appliance manufacturer said sales in all markets across South West Europe fell, while North-Eastern Europe markets experienced a high single digit decline following the ongoing conflict in Ukraine. 

Sales fell 28% in the Americas region to €96m ($105m), 25% across the Middle East, India and Africa (MEIA) to €44.3m ($48m) but grew 0.3% across Asia Pacific to €89m ($97m). 

De’Longhi said the lower sales was expected following the ‘extraordinary growth’ in the first quarters of the previous two years, where revenues increased 59% and 6% respectively as consumers sought to replicate café experiences at-home during lockdown. First quarter sales are 60% higher in 2023 than the corresponding period in 2019. 

However, De’Longhi cited its professional coffee segment, comprising Swiss super-automatic espresso machine maker Eversys, as continuing its growth trajectory at a high-double-digit rate. 

Eversys, which De'Longhi fully acquired for CHF 150m ($164m) in May 2021, doubled its turnover last year.  

“Looking ahead to the start of 2023, despite results that have been impacted by an unfavourable macroeconomic context, with a prudent behaviour of consumers and distributors, we are satisfied with how the Group has been able to react to the numerous challenges and difficulties. To date, our Group can count on revenues and margins that remain well beyond pre-pandemic levels, thanks to organic growth, investments and acquisitions finalised in recent years: revenues for the quarter are now 60% above those of 2019,” said Fabio De' Longhi, CEO of De'Longhi. 

“Looking ahead to the coming quarters, it is reasonable to assume that the comparison with last year will become progressively less challenging, thus maintaining the growth rate at sustained levels compared to the pre-pandemic period. In this context, therefore, we confirm the guidance for the year which foresees revenues slightly down compared to 2022 and an adjusted Ebitda in the range of €370- €390m,” he added. 

Treviso-based De’Longhi’s total sales declined 2% year-on-year in 2022 to €3.2bn ($3.4bn) as consumer confidence and disposable income fell. 

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