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 consolidation and strong household segment growth.

• Adjusted EBITDA for H1 was €204.7 million (14.4% margin), up 27.8%; Q2 adjusted EBITDA was €110.9 million (14.5% margin).

• Net income for H1 2024 was €106.2 million, up 28.4% year-over-year; Q2 net income was €54.8 million.

• Free cash flow before dividends and M&A reached €425 million over the last 12 months, with a positive net financial position of €305.3 million after acquisitions and dividends.

• Growth was driven by La Marzocco and Eversys consolidation, strong coffee and nutrition segments, and margin expansion.

Financial highlights

• Q2 2024 revenues rose 11% year-over-year to €764.9 million; organic growth in Q2 was 1.5% due to comfort segment weakness.

• Net industrial margin was 51.2% of revenues in Q2 2024, up from 48.8% in 2023.

• 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%.

• Net income margin rose to 7.5% in H1 (from 6.4%); Q2 net income margin at 7.2%.

• Free cash flow before dividends and acquisitions was €74.3 million in H1, €425.2 million in the last 12 months.

Outlook and guidance

• FY 2024 revenue growth expected in the 9%-11% range, including La Marzocco and Eversys.

• Adjusted EBITDA guidance for FY 2024 is €500-530 million, with expectations to reach the upper end.

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

• Positive outlook for core products and markets, despite macroeconomic and geopolitical uncertainties.