ELICA S.p.A. BoD APPROVES Q1 2019 RESULTS
OWN BRAND PRODUCT SALES CONTINUE TO GROW
AS MARGIN STRENGTHENS FURTHER
FY 2019 GUIDELINES APPROVED
GROWTH IN REVENUES AND STRENGTHENING OF MARGINS
Consolidated Highlights – Q1 2019
• Revenue: Euro 116.6 million (Euro 118.9 million in Q1 2018), -1.9% on the same period of the previous year (-3.0% net of the currency effect). Cooking segment in line with Q1 2018, Motors segment impacted by slower European and Turkish demand;
• Own brand product sales, mainly the Elica brand, continue to grow – reporting a revenue increase of 8.2%, while in Q1 2019 the own brand product contribution to cooking revenue rises to 50.0%;
• OEM revenue, mainly in EMEA, again impacted by forecast lower market demand in the area and sales numbers of some of the main segment customers.
• EBITDA1: Euro 10.2 million, up 5.2% (+70bp) on Q1 2018 (Euro 9.7 million); margin rises to 8.8% from 8.1% in the same period of the previous year;
• EBIT: Euro 4.3 million (Euro 4.8 million in Q1 2018), with 3.7% revenue margin due to higher amortisation and depreciation with the full implementation of the investment plan supporting the development of the new product range launched in 2018;
• Net Profit attributable to the Group: Euro 1.4 million, with significant growth of 29.8% on Euro 1 million for the same period of 2018;
• Net Financial Position2: Euro 67.4 million (Euro 73.0 million in Q1 2018), compared to Euro 56.3 million at December 31, 2018, featuring increased inventory in support of B2C segment development and reduced Capex;
Milan, May 7, 2019 – The Board of Directors of Elica S.p.A., the parent of a Group that is the leading manufacturer of kitchen range hoods, has today approved the Q1 2019 consolidated results, prepared in accordance with IFRS.
“The Q1 results highlight continued own brand products sales growth (+8.2%) and an improving operating margin (rising to 8.8% of revenue). The Cooking business result was substantially in line with the first quarter of 2018, despite the EMEA B2B contraction and lower estimated demand levels. The contribution of the new Nicola Tesla and New Ceiling range shall be fully apparent in the Q2 results, while reporting doubledigit growth on the first quarter of 2018. In the second half of 2019, the negative impact from the EMEA B2B segment shall ease and the benefits from strengthening the sales structures and rolling out marketing investments shall become evident” stated Antonio Recinella, Chief Executive Officer of Elica.”
The Elica Group has been present in the cooker hood market since the 1970’s, is chaired by Francesco Casoli and led by Antonio Recinella and today is the world leader in terms of units sold. It is also a European leader in the design, manufacture and sale of motors for central heating boilers. With over 3,800 employees
and an annual output of approx. 21 million units, the Elica Group has seven plants, including in Italy, Poland, Mexico, India and China. With many years’ experience in the sector, Elica has combined meticulous care in design, judicious choice of materials and cutting edge technology guaranteeing maximum efficiency and reducing consumption, making Elica the prominent market figure it is today. The company has revolutionized the traditional image of the kitchen cooker hood: it is no longer seen as simple accessory but as a design object which improves quality of life.