De'Longhi (DLG) Q1 2025 earnings summary

Executive summary

• Achieved 14.6% revenue growth in Q1 2025 to €755.2 million, with strong organic growth in household (+7.2%) and professional (+22% pro-forma) divisions, supported by La Marzocco consolidation.

• Profitability improved with adjusted EBITDA up 24% to €116.3 million (15.4% margin), and net income up 11.7% to €57.4 million, driven by higher volumes, favorable mix, and professional business growth.

• All geographies contributed positively, with notable expansion in Europe (+10.7%), Americas (+18.7%), Asia-Pacific (+23.7%), and MEIA (+25.6%).

• Product innovation and design excellence recognized with multiple international awards.

• Net financial position improved to €482.8 million, up €175.2 million year-over-year, even after a €36M share buyback.

Financial highlights

• Revenues reached €755.2 million (+14.6% year-over-year); net industrial margin rose to 52.3% of revenues (from 50.9% in Q1 2024).

• Adjusted EBITDA margin improved to 15.4% (vs. 14.2% last year); adjusted EBITDA was €116.3 million, up 24%.

• Net income attributable to the group was €57.4 million (7.6% margin), up 11.7% year-over-year.

• Free cash flow before dividends, buybacks, and acquisitions was negative €124.2 million, mainly due to inventory build-up for risk mitigation.

• Net operating working capital increased to €230.9 million (6.4% of revenues), reflecting higher inventory.

Outlook and guidance

• 2025 guidance reaffirmed: turnover growth of 5–7% and adjusted EBITDA of €580–600 million, supported by both household and professional business expansion.

• Tariff impact for 2025 estimated at €15 million, with mitigation strategies in place (production relocation, pricing, cost control).

• Expect stronger first half and tougher comparison in the second half, but full-year targets to be met.

• Ongoing investments in advertising and promotion to support growth; negative tariff impact anticipated in the US.

• Cautious approach maintained due to ongoing global economic uncertainty and market volatility.