Source : EuropeanMarkets
The first nine months :
In the first 9 months of 2015 the market environment, similarly to the previous fiscal years, is not free from certain critical elements, but there are some encouraging signs both in connection with the trend of certain product categories (espresso machines above all) and with the performance of certain markets (such as, for instance, continental Europe).
The Group continued to proceed along its growth path, consolidating and increasing its market shares also thanks to a firm commitment to investments in A&P and R&D.
Similarly to the two past fiscal years, also the first nine months of 2015 were significantly affected by foreign exchange rates (FX) fluctuations; currencies had overall a positive impact on sales, and a negative impact on margins. The bulk of the negative impact was due to the sharp devaluations of Russian ruble and Ukraine’s hrivnia and to the appreciation of the Group’s cost currencies, whose impact was anyway mitigated thanks to hedging.
Financial highlights :
In Q3 2015 net industrial margin reached € 202.8 million (47.8% of revenues) compared to € 182.9 million in Q3 2014 (47.3%).
EBITDA during the first 9 months of 2015 stood at € 149.9 million (from € 136.6 million in 2014) up by +9.7%. As a percentage of revenues, EBITDA decreased from 12.6% to 12.3%, due to a very negative FX impact, worth € -42.3 million.
At constant currencies and excluding hedging, EBITDA would have increased by +40.7% (or € +55.6 million), from 12.6% to 16.3% of revenues.
Q3 2015 EBITDA stood at € 54.6 million (12.9% of revenues) from € 49.4 million (12.8% of revenues) in 2014. At constant exchange rates and excluding hedging, Q3 2015 EBITDA would equal € 73.8 million.
EBIT for the first 9 month of 2015 reached € 111.8 million (versus € 103.2 million in 2014), a slight decline as a percentage of revenues (9.2% versus 9.5% in 2014). EBIT was negatively affected by the aforementioned FX impact, as well as by higher D&A (increased by € 4.7 million) due to the significant industrial investments made by the Group.
EBIT reached € 41.4 million in Q3 2015 (9.8% margin), increasing from € 38.0 million in 2014 (same margin at 9.8%) despite higher D&A by € 1.7 million.
Outlook :
In relation to the 2015 growth targets, management now expects a high-single-digit revenues growth at constant currencies and that EBITDA at current exchange rates will increase in absolute terms (despite a higher than expected negative FX impact).
Management expects also that the market context will remain competitive for the coming quarters; however, the brands contribution as well as the industrial, organizational and product investments made by the Group will allow it to continue along its growth trajectory.
The first nine months :
In the first 9 months of 2015 the market environment, similarly to the previous fiscal years, is not free from certain critical elements, but there are some encouraging signs both in connection with the trend of certain product categories (espresso machines above all) and with the performance of certain markets (such as, for instance, continental Europe).
The Group continued to proceed along its growth path, consolidating and increasing its market shares also thanks to a firm commitment to investments in A&P and R&D.
Similarly to the two past fiscal years, also the first nine months of 2015 were significantly affected by foreign exchange rates (FX) fluctuations; currencies had overall a positive impact on sales, and a negative impact on margins. The bulk of the negative impact was due to the sharp devaluations of Russian ruble and Ukraine’s hrivnia and to the appreciation of the Group’s cost currencies, whose impact was anyway mitigated thanks to hedging.
Financial highlights :
In Q3 2015 net industrial margin reached € 202.8 million (47.8% of revenues) compared to € 182.9 million in Q3 2014 (47.3%).
EBITDA during the first 9 months of 2015 stood at € 149.9 million (from € 136.6 million in 2014) up by +9.7%. As a percentage of revenues, EBITDA decreased from 12.6% to 12.3%, due to a very negative FX impact, worth € -42.3 million.
At constant currencies and excluding hedging, EBITDA would have increased by +40.7% (or € +55.6 million), from 12.6% to 16.3% of revenues.
Q3 2015 EBITDA stood at € 54.6 million (12.9% of revenues) from € 49.4 million (12.8% of revenues) in 2014. At constant exchange rates and excluding hedging, Q3 2015 EBITDA would equal € 73.8 million.
EBIT for the first 9 month of 2015 reached € 111.8 million (versus € 103.2 million in 2014), a slight decline as a percentage of revenues (9.2% versus 9.5% in 2014). EBIT was negatively affected by the aforementioned FX impact, as well as by higher D&A (increased by € 4.7 million) due to the significant industrial investments made by the Group.
EBIT reached € 41.4 million in Q3 2015 (9.8% margin), increasing from € 38.0 million in 2014 (same margin at 9.8%) despite higher D&A by € 1.7 million.
Outlook :
In relation to the 2015 growth targets, management now expects a high-single-digit revenues growth at constant currencies and that EBITDA at current exchange rates will increase in absolute terms (despite a higher than expected negative FX impact).
Management expects also that the market context will remain competitive for the coming quarters; however, the brands contribution as well as the industrial, organizational and product investments made by the Group will allow it to continue along its growth trajectory.
Source : Press Release De'Longhi, Treviso (Italy), November 11, 2015
