Elica: 2019 results in line with market expectations

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In 2019, Elica’s consolidated revenues amounted to 480 million euro, +1.6% on the same period of 2018 (+0.3% net of the currency effect). As communicated by the company, the poor market performance continues, with estimated global range hood demand down 0.8% in 2019, however improved in the fourth quarter of the year. In particular, North America continues to perform poorly (-2.1%), while Latin America recovered slightly (+0.6%). Asia (-1.2%) also contracted, despite the improved Indian demand – supported by higher public and consumer spending – mainly due to the Chinese market reduction. The EMEA market continues to be impacted by Turkey, while demand has grown in France and UK. Own brand sales in 2019 were up 10% (+8.5% at like-for-like exchange rates), picking up to 11.7% in Q4 (+9.6% at like-for-like exchange rates), thanks in particular to the EMEA and India regions. The overall percentage of own brand sales out of the total Cooking segment revenue rose to 52% (55% in Q4 2019). OEM revenue reduced 4.5% on the previous year (-6.1% at like-for-like exchange rates), impacted particularly by the slowdown on the American market, despite signs of recovery in the second half in EMEA. The Motors segment, representing 13% of total revenue, saw a significant improvement in the fourth quarter of the year (+17.5% on Q4 2018). The overall contraction in 2019 (-4.4%) is however impacted by the poor performance in the first half of the year, particularly on the Turkish market. “We are greatly satisfied with the 2019 results which are in line with market expectations – both in terms of revenue and margins – while cash generation exceeded expectations – stated Mauro Sacchetto, Chief Executive Officer of Elica -. In the second half of 2019, the Group implemented an internal reorganisation ahead of a relaunch over the coming three years. We expect a further improvement for all financial indicators, particularly EBIT, in addition to the cash generation, thanks in part to a rebalancing of investment on revenue. In terms of business development, we expect to launch new products at Eurocucina in April 2020, further boosting growth both in Europe and in our expanding markets – particularly North America and Asia Pacific”.