De’Longhi forecasts robust professional coffee machine segment sales this year following its move to combine Eversys and La Marzocco into a single business group
A limited edition Cameo X espresso machine launched by Eversys in November 2019 | Photo credit: Eversys
De’Longhi has credited Eversys as a key contributor to its 2023 revenues after the super automatic espresso machine manufacturer achieved significant sales growth last year.
Announcing its preliminary annual results, Treviso-based De’Longhi’s group sales fell 2.7% to €3.07bn ($3.3bn), citing a reduction in stock levels held by retailers and the exit of its US mobile air conditioning business as the main factors behind the decline.
However, the Italian appliance manufacturer hailed the strong performance of its professional coffee segment, with Eversys revenues rising more than 30% during the period.
Coffee appliances currently account for nearly 60% of De’Longhi’s total revenues, with the group’s domestic coffee machine business also posting moderate sales growth last year, reaching a mid-single-digit rate in the fourth quarter.
Its professional segment is set for further growth this year after De’Longhi formed a new global business group comprised of its Eversys and La Marzocco brands in January 2024. With a forecast combined turnover of approximately €372m ($409m), De’Longhi said the move will create synergies and cross-selling opportunities, as well as advance its position in the super automatic, traditional and luxury home espresso machine markets.
“During the year we were able to achieve a significant improvement in growth, profitability and cash generation trends for the group. In the second half of 2023, the continued expansion of coffee machines and the return to growth of the nutrition and food preparation sector allowed the group to achieve organic growth in the six months at a high single digit rate,” said Fabio de’ Longhi, CEO, De’Longhi Group.
De’Longhi completed its acquisition of Eversys for CHF 150m ($164m) in May 2021, purchasing the remaining 60% stake in the business to add to the 40% it acquired in June 2017.
In September 2022, Swiss super automatic espresso machine manufacturer Eversys began upgrading its Sierre-based factory to produce a new line of fully automatic cold brew coffee machines which it will reportedly supply to Starbucks.
The CHF 25m ($25.5m) expansion project will boost production capacity by 46%, with shipments of the new machines to the US set to commence in the first quarter of 2024.