De'Longhi (DLG) Q2 2024 earnings summary

Executive summary

• H1 2024 revenues grew 10.3% year-over-year to €1,423.7 million, with Q2 revenues at €764.9 million, driven by La Marzocco/Eversys consolidation and strong household segment growth.

• Adjusted EBITDA margin improved to 14.4% in H1 2024 from 12.4% in H1 2023, reflecting operating leverage and product mix; Q2 adjusted EBITDA was €110.9 million (14.5% margin).

• Net income attributable to the Group rose 28.4% to €106.2 million in H1; Q2 net income was €54.8 million.

• Growth was driven by the consolidation of La Marzocco/Eversys in the professional coffee segment and continued strength in core household categories, despite a weak comfort segment.

• Strategic exit from the US portable air conditioning market and weak comfort segment sales impacted results.

Financial highlights

• Net industrial margin improved to 51.1% of revenues in H1 (up from 49.6% in H1 2023); Q2 margin was 51.2%.

• Adjusted EBITDA for H1 2024 was €204.7 million, up 27.8% year-over-year; Q2 adjusted EBITDA was €110.9 million, up 29.2%.

• EBIT for H1 was €143.7 million (10.1% margin), up 32.9% year-over-year; Q2 EBIT was €79.0 million (10.3% margin).

• Free cash flow before dividends and acquisitions was €74.3 million in H1, stable versus prior year; rolling 12-month free cash flow reached €425.2 million.

• Net financial position at June 30, 2024, was €305.3 million, after absorbing €326.8 million for the La Marzocco and Eversys business combination.

Outlook and guidance

• Full-year 2024 revenue growth guidance confirmed at 9%-11%, including perimeter expansion from acquisitions.

• Adjusted EBITDA for the year expected at the upper end of €500-530 million.

• Margins expected to remain strong in H2, with continued positive gross margin and prudent cost management.

• Management notes ongoing macroeconomic and geopolitical uncertainties but expects continued margin improvement.

• July performance in line with expectations; positive outlook for coming months.