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H1 2024 Financial Highlights

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Results in line with plans, slowing revenue decline in a context of persisting market contraction and negative Price Mix

“The sector continues to contract significantly, but we are pressing on.  We have maintained margins in a period of major investments to support the Cooking segment transformation. These investments are crucial for our future. We have acted incisively on costs and are focusing on becoming ever closer to those high-potential markets in which we have not yet established a direct presence. This is considered also in view of our successful experience to date in North America, where we have achieved promising results through the new distribution strategy and initiatives which shall also be extended to Europe. Our vision is very clear and we shall execute our project with a medium-term outlook, confident that the results shall materialise” stated Giulio Cocci, Chief Executive Officer of Elica.
 
H1 2024 Financial Highlights
237,4 M€
Consolidated Revenue
improving in Q2 2024 (+3%) on the first quarter of the year, driven by OEM segment growth (+9.3% vs Q2 2023), thanks to the new projects and customers and the recovery of the Motors segment, despite the still weak market environment, both for the Cooking and Motors divisions, which continues to affect the recovery of revenue and margins and particularly on the Group’s main European market. EMEA revenue, accounting for approx. 80% of total revenue, contracted 7.6%, with Elica’s performance therefore mirroring the market.
5,1 M€
Adjusted EBIT
Margin on revenue of 2% (6% in H1 2023), improving in Q2 to 2.8% of revenue, compared to 1.5% in Q1. In the first half of 2024, in addition to the negative price mix effect and a market featuring heightened promotional activity, the costs incurred by Elica to support growth for products, rebranding, positioning and “Eurocucina” impacted significantly, partially offset by SG&A cost control and the initial reduction of raw material costs.
1,8 M€
Adjusted Group Net Profit
at 1.2 million, compared to Euro 8.5 million in H1 2023. The Minorities profit was approx. Euro 0.7 million. Net Financial Expenses at Euro -3.6 million compared to Euro -2.3 million in the same period of the previous year. In the comparison, the negative impact of exchange rates, particularly on the Japanese Yen and the Mexican Peso against H1 2023, should be considered, in addition to the increased cost of funding from the second half of 2022 following the raising of the ECB’s benchmark rates.
Performance
By Business Area
The Cooking division, which accounts for 78% of total revenue, contracted 4.1% (-3.5% organic)

with all product categories declining, although particularly own brand sales by 10.3% (-8.7% at constant exchange rates) on the first half of 2023, in line with the market. OEM (third party brand channel) sales however grew, enabling 5.8% growth (5% at constant exchange rates) on the first half of 2023, and particularly in Europe and in America. The North American business in fact reported growth of 5% vs H1 2023, thanks to the winning of new OEM customers, the launch of new products and the new distribution strategy.

The Motors division, accounting for 22% of total revenues, saw sales contract 14.9% on the first half of 2023, in line with the Heating market which contracted significantly across Europe following the exceptional peak of 2023.

In addition, results were impacted also by the uncertainty and delays regarding the energy transition regulations, together with a change in the incentive rules and the measures to reduce OEM customer stock. The Ventilation area however reports signs of recovery in 2024 quarter-over-quarter. For both divisions, the gaining of new market share is partially offsetting the weak market environment.

Analysts Presentation H1 2024 Results click. 
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FY 2023 Results