Earnings call transcript: DeLonghi Q2 2025 shows strong growth amid challenges

DeLonghi SpA reported robust financial results for the second quarter of 2025, with revenues growing 11.8% at constant currency for the first half of the year. The company achieved a 10.3% organic growth in Q2, driven by strong performance across its geographical markets. Adjusted EBITDA reached €124 million, accounting for 15% of revenues. According to InvestingPro data, the company maintains strong financial health with a GOOD overall score and appears undervalued based on Fair Value analysis. Despite a positive net financial position of €346 million, DeLonghi anticipates slower growth in the latter half of the year due to tariff impacts and a challenging economic environment. The stock saw a modest increase of 1.62% post-announcement, closing at €28.86.

Key Takeaways

• DeLonghi’s first half of 2025 revenues increased by 11.8% at constant currency.
• Adjusted EBITDA for Q2 stood at €124 million, representing 15% of revenues.
• The company maintains a positive net financial position of €346 million.
• Anticipated slower growth in H2 2025 due to tariffs and economic challenges.
• Stock price rose 1.62% following the earnings announcement.

Company Performance

DeLonghi demonstrated a strong performance in Q2 2025 with a 10.3% organic growth. The company has been successful in maintaining its market leadership in coffee machines and personal blending markets. Growth was particularly strong in Europe and the Asia Pacific, with the latter achieving a 16% increase at constant currency. The company continues to innovate with new product launches and a global coffee campaign featuring Brad Pitt.

Financial Highlights

• Revenue: €[amount] (11.8% growth YoY at constant currency)
• Adjusted EBITDA: €124 million (15% of revenues)
• Net industrial margin: 53.4%, up from 51.2% in 2024
• Net financial position: €346 million
• Cash flow before dividends/buybacks: €286 million over 12 months

Outlook & Guidance

DeLonghi projects a revenue growth of 6-8% for 2025, with adjusted EBITDA guidance between €590-610 million. The company expects the second half of the year to be more challenging due to tariff impacts and tough comparisons with a strong 2024 performance. The guidance reflects anticipated price increases of approximately 10% in the U.S. market. InvestingPro data shows the company’s strong track record with a 5-year revenue CAGR of 11% and analysts maintaining a positive outlook, with consensus recommendations leaning towards Buy. Get access to 6 additional exclusive ProTips and comprehensive valuation metrics with an InvestingPro subscription.

Executive Commentary

Fabio DeLonghi, CEO, remarked, "We delivered again another period of strong growth in the first half of the year." He also noted the professional division’s outstanding results, posting over 20% in pro forma growth. DeLonghi highlighted the changing consumer spending patterns in China as a significant factor in their strategic planning.

Risks and Challenges

• Tariff impacts: Expected to result in a €50 million impact for 2025.
• Economic environment: Slower growth anticipated due to broader economic challenges.
• Promotional environment: A challenging promotional landscape is expected in Q3.
• Supply chain: Potential disruptions due to sourcing diversification and inventory buildup.

Q&A

During the earnings call, analysts inquired about the impact of tariffs, price increases in the U.S. market, and the promotional environment for Q3. DeLonghi confirmed a €50 million tariff impact and noted that no immediate contracts with Starbucks are expected. The company is preparing for a challenging promotional environment in the upcoming quarter.

Full transcript - De Longhi SpA (DLG) Q2 2025:

Conference Operator, Chorus Call: Good afternoon. This is the Chorus Call conference operator. Welcome, and thank you for joining the DeLongi First Half twenty twenty five Consolidated Results. As a reminder, all participants are in listen only mode. After the presentation, there will be an opportunity to ask questions.

At this time, I would like to turn the conference over to Mr. Fabio DeLongi, Chief Executive Officer of DeLongi. Please go ahead, sir.

Fabio DeLonghi, Chief Executive Officer, DeLonghi Group: Thank you. Good afternoon, ladies and gentlemen, and welcome to the DeLonghi Group Quarter two twenty twenty five Results Conference Call. Today, together with me are Nicola Seraphin, Group General Manager Marco Cinci, Chief Planning and Control Officer Stefano Biella, CFO Samuel Ecudet, Investor Relations Director and M and A Manager and Saga Matsocato, IR Specialist. I’m delighted to report that the 2025 showed a continuation of the positive trends established over the past two years, with widespread revenue growth across all main categories. This performance characterized by robust growth and top tier margins in both the Home and Professional divisions reaffirms the effectiveness of our strategy for delivering sustainable medium term growth.

With regard to the Professional division in detail, the Professional Division delivered outstanding results with pro form a growth over 20% in both quarter one and quarter two and an adjusted EBITDA margin above 25%. These metrics position the business combination among the leading high growth and high margin companies in the mid cap space. The division now representing 14 of total revenues and 24% of the group EBITDA benefited from double digit growth from both of its brands. This is mainly driven by ongoing premiumization of the coffee quality and experience in the out of all market, where our portfolio leads. In addition, La Marzocco iconic home products are redefining the market with remarkable success, leveraging outstanding brand awareness and unique partnerships.

About Household division, the division grew over 7% at constant FX in the first half, notwithstanding a more challenging geopolitical and tariff environment. Our growth is driven by a portfolio of market leading brands, consistently strengthening by award winning product launches. Recently, we unveiled our exciting product pipeline that developed through the end to end made by DeLongi approach, which integrates consumer insights, distinctly designed and proven manufacturing excellence. The strategy will be supported by significant investment in marketing communication across all brands and channels. Specifically, as recently disclosed, I’m quite excited about the upcoming launch of the third coffee global campaign, starring Brad Pitt as an ambassador.

Building on a proven track record, this would be the group’s most extensive campaign to date in terms of consumer reach across traditional channels and social media. Leveraging these investments and considering the resilience and attractiveness of our categories, we are confident in our ability to maintain strong consumer preference, even in case of challenging future scenarios. Lastly, on coffee visibility and engagement in the 2025, our brands boosted their global profile to high impact activations of premier events like Milan Design Week, the London Coffee Festival and the World of Coffee in Geneva, connecting with tens of thousands of consumers and professionals. Now, let me focus on the quarterly results. The group achieved a remarkable growth across both division in half one twenty twenty five, despite negative currency headwinds.

On a constant currency basis, growth would have been 11.8% in the first half and 10.3% in quarter two. The first half of the year saw positive performance across all areas, heightened by widespread geographic growth, a dynamic that continue into the second quarter with Asia Pacific region leading the pack. In more detail, Europe positive momentum continues with a growth of 9.1% in the quarter, backed by the solid results of both divisions. The household division was up 7.2 with Italy, the Iberian Peninsula, The Nordics, Benelux, Czech Republic experiencing a double digit growth, thanks to the strong sales of the home coffee and a positive contribution of Nutrition, led by Kenwood Kitchen Machine and international expansion of Nutribullet. The Professional division was up double digit, supported by both brands.

MIA was up by 3.6% despite significant FX headwinds in the quarter, plus 8.7% at constant FX. Household division was slightly positive, while the Professional division recorded significant growth with Saudi and UAE in the lead. The Americas grew by 6.3, plus 11.1% organically in the second quarter, specifically in The U. S. Only.

The Professional division and the home coffee category recorded a strong performance, more than offsetting the weakness in the nutrition area and the negative currency effect. Asia Pacific recorded another positive quarter, growing by 10%, respect to 2024. Despite the strong FX headwinds on a consistent constant currency basis, growth would have been plus 16%. The Household division led this performance with a low teens growth rate, driven by strong double digit increase in the Chinese market, up double digit in both quarters and solid results in Japan. As regards to the division, the household division reported turnover of $1,364,000,000 dollars a plus 6.5% increase over the previous year, while the Professional division recorded revenues of $222,000,000 up plus 53.5% compared to 2024, corresponding to a pro form a growth of 23.5%.

In detail, concerning the Household division, we highlight as follows. The Home Coffee segment continued to lead growth, posting a mid to high single digit increase. In the second quarter, this performance was driven by strong sales of Pampa Sheen, boosted by recent product launches and the continued robust performance of the Nespresso products. The Nutrition and Food Preparation segment was flat. A strong double digit growth from air fryer and continued gains from CanWood Kitchen Machines, up from the fourth consecutive quarter, were offset by declines in the smaller categories and The U.

S. Nutrition market. Concerning the other categories, the Brown Ironing brand again achieved double digit growth, while the Comfort categories performance was flat during the quarter. The Professional division delivered another quarter of remarkable growth, with revenues expanding by 25%. This performance was fueled by significant year over year rebound for Evesys, which was driven by strong growth in all major markets.

Additionally, La Marzocco maintained its robust positive momentum, expanding sales in both its out of home and home segments. Looking now at the evolution of profitability, in the 2025, the group operating margin expanded significantly, driven by a greater contribution from the Professional division and volume growth in the household. Specifically, the Household division generated an adjusted EBITDA margin of 13.3, while the Professional division achieved a margin of 26.4%. Regarding the total group, in the second quarter, the net industrial margin stood at 53.4% of revenues compared to 51.2% in 2024, thanks to the increase in volumes, certain cost efficiencies and a better mix. The adjusted EBITDA was equal to EUR 124,000,000, 15% on revenues, improving by 50 basis points with respect to last year.

This improvement was primarily driven by higher exposure to the Professional division and operating leverage from the Household division growth, which more than offset increased median investments, approximately €10,000,000 higher logistic costs and tariffs. Price mix contribution was positive in the quarter and in the first half, while the currency effect was flattish. Regarding the tariff uncertainty, over the past months, our teams have been working on a comprehensive tariff mitigation strategy, focused on sourcing diversification, commercial actions, cost control to minimize the potential effect. As a result, we can now rely on sourcing from Europe, China and Southeast Asia, and we have successfully fine tuned commercial actions with retailers in The U. S.

Market. In the last conference, we disclosed a potential net impact of approximately EUR 50,000,000 for the full year 2025. Although the situation remains dynamic, the effectiveness of our actions and our current inventory level allow us to reaffirm the potential net impact of approximately €50,000,000 for the year, even with potential scenario changes in the coming weeks. In June 25, the group net financial position was positive at €346,000,000 an improvement compared to $3.00 €5,000,000 in June 2024. With regards to the cash generation, the cash flow before dividends, buyback and acquisition was positive for $286,000,000 in the twelve months.

In the first half, cash flow before dividends, buybacks and acquisition was negative for $46,000,000 mainly due to the effect of the cash absorption related to the increase in inventory absorbing €221,000,000 due to inventory buildup in The U. S. And the usual business seasonality. To summarize, we delivered again another period of strong growth in the first half of the year. Our proven diversification strategy and the power of our brands portfolio allowed us to successfully navigate a dynamic consumer environment.

As a result, we once again outperformed the market and maintain our industry leading margins, extending our track record of delivering best in class results and preserving our financial flexibility. Household division posted excellent half one growth over 7% at constant currency, reflecting our effective approach of product innovation and targeted communication. The upcoming global campaign featuring Brad Pitt will further amplify this strategy. The Professional division once again delivered outstanding results, posting over 20% in pro form a growth and adjusted EBITDA margin above 26. This performance confirms the value of our strategic hub in the Professional segment and places us firmly amongst leading high growth and high margin companies.

While uncertainty in tariffs and geopolitical landscape persist, we’re upgrading our 2025 guidance on the strength of these solid results, with foreseen revenues growth between 68% and an adjusted EBITDA of €590,000,000 to €610,000,000 for the new perimeter. We now welcome your questions. Thank you.

Conference Operator, Chorus Call: Thank you. This is the Chorus Call conference operator. We will now begin the question and answer session.

Analyst: Good afternoon, and congratulations on the results. First of all, I have a few questions. First one about guidance. If you can share with us which are the FX assumptions embedded in both revenues and the EBITDA guidance. Second one is is on on A and P.

If you can quantify the amount of A and P cost you born in h one. The third question is about the acceleration you’ve had in growth in The Americas in in q two. If you can comment and expand a bit about that? And the last one is on the profitability you disclosed regarding your professional business. Should we imagine this 25%, 26% level as something holding true also for the full year, meaning much less seasonality compared to your traditional household business?

Thank you.

Fabio DeLonghi, Chief Executive Officer, DeLonghi Group: Okay. The guidance, okay. We again posted two solid quarters. Now we see continued growth for us in the next couple of quarters, although we see a more uncertain macroeconomic scenario, both in Europe and in The United States with the tariff impacting on global economies. We also we have a challenging comparison with last year.

I remind you that last year half two was extremely strong. Therefore, we think that we can continue growing, but you should expect a lower growth rate compared to first half twenty twenty five. With regard to A and P, we think that A and P continue to be a very important element in our strategy. It can fuel our growth in our sales. We had a plus EUR 10,000,000 investment in the first half, which is in line with the plans.

We have said that we want to grow in absolute value the investments. In the second half, we will roll out the bread feed campaign. So we will continue invest more than last year in absolute value, but we’ll be fairly in line with the incidence of A and P that we had in the previous year. The third question is about the acceleration in quarter two in The USA. Coffee was brilliant.

Unfortunately, Nutrition a bit weaker, but after a record year for Nutribullet. I’d like also to highlight that Nutribullet has record market share in the personal blending segment in a corded market, where we continue to lead the market with increased market share. And in The U. S. A, actually also despite the entrance of Ninja, we have delivered a strong growth with our product portfolio from pump grinder to fully auto and espresso as well.

So the success of The U. S. Market is very much linked to the success of our coffee machine despite the higher competition in the market. The fourth question is the professional margin. Looks like the Professional division is going strong.

We see a nice order portfolio, which make us comfortable with our, let’s say, guidance. The margins are record. We spoke in the past about 23 plus percent margin for the division. We have achieved thanks to the great performance of both brands, both companies, record results with a 26% EBITDA that somehow scary as a comparison, but we feel comfortable that we can continue to maintain these levels probably for the remainder of the year. Maybe some uncertainty around the tariff impact in The U.

S, which we are managing, but confident on the back of an incredible performance in both out of home and home professional business with Lama Zocco. Thanks.

Conference Operator, Chorus Call: Next question is from Geoffrey Dallouin, BNP Paribas Exane.

Geoffrey Dallouin, Analyst, BNP Paribas Exane: Yes. Good afternoon, everybody. Thanks for taking my questions, please. I will have three questions, please, if I may. The first one is related to your EBITDA guidance because it seems your guidance implies margin to decline in the second half of the year compared to the second half of last year.

So I just would like to get what shoes trigger the margin decline in the second half of this year compared to last year. My second question is related to the tariff. So confirmed the EUR 50,000,000 negative EBITDA impact for the full year. Should we expect an additional impact into 2026 given the timing of the tariffs and measures you have taken and put in place in order to mitigate the impact? And thirdly, regarding The U.

S, could you maybe comment on what are you seeing in terms of, let’s say, sell in and sell out? Are you seeing some discrepancy between sell in and sell out in The U. S? Thank you.

Fabio DeLonghi, Chief Executive Officer, DeLonghi Group: Well, first question about BDA, which is partially answered by your second question. I mean, I would remind you that now in the second half, we’re going to face the tariffs in The U. S. We have to offset EUR 15,000,000, which is affecting our profitability in the second half. Also, we expect also the tariff potentially to slow down a few markets directly or indirectly, because I think that also Europe might suffer from a geopolitical standpoint and economic scenario.

So we think that probably tariff is the main reason and a weaker economy. But we will continue to outperform last year despite the tough comparison. I also would highlight again that last year was a record half for the group. And we have already announced that we will invest more in absolute value in advertising, as said before. So it’s a combination of a number of elements.

TARI is first, macroeconomic scenario, increased advertising spend to support our position, our brands and last but not least, tough comparison with last year. With regards to the EUR 50,000,000, we confirm the EUR 50,000,000 negative impact for 2025. Next year, we probably this year, we have a six months, let’s say, impact on total sales, let’s say, the imports. Next year, we will have the full impact, but at the same time, we will have the pricing offsetting that for the first six months. So we think that it’s maybe too early now to elaborate, but you shouldn’t expect a major impact on next year.

But we will elaborate on that maybe later on during the year. It’s a very, let’s say, very complicated situation to manage, but we have passed on the price increases, so far so good. And which is leading to your last question, What we have seen probably is slowdown in the selling probably in certain categories in the first six months, as some of the retailers were a little bit reluctant to accept the price increases. So we don’t think that there is a high stock level at trade at the moment. And we actually think that sell in should have been fairly in line with the sell out for the moment, Actually, probably a little bit stronger sell out versus the sell in due to these negotiations ongoing negotiations and difficulties in passing on pricing, which we have just recently completed.

Geoffrey Dallouin, Analyst, BNP Paribas Exane: Thank you very much.

Conference Operator, Chorus Call: Next question is from Izako Brommilla, Mediobanca.

Izako Brommilla, Analyst, Mediobanca: Hi, good afternoon, everybody. Thanks for taking my questions. The first one is a follow-up to the point on price increases. If you can recap or give us sort of order of magnitude of the price increase you introduced in The United States? Second question is on the split of performance between household and professional.

Thanks for the additional granularity you have been giving. I probably lost the detail on Americas. So if you can repeat the performance of household division versus professional in The Americas. Last question is on networking capital. Clearly, you made significant investments in the first half.

If you can help us assess the trajectory to be expected by end of the year on net working capital or inventory if you have an internal target by December?

Fabio DeLonghi, Chief Executive Officer, DeLonghi Group: The first question, maybe Nicolas you want to handle the first question from Zakov about

Nicolas Seraphin, Group General Manager, DeLonghi Group: The magnitude of tariffs, yes, for this year, we have an estimate, let’s say, gross impact of tariffs in the ballpark of €25,000,000.30000000 Obviously, we have worked with a lot of mitigation actions, including some reloading of stock in The U. S. You see also from our stock level in this moment, a large part of the stock level is it was planned to mitigate tariffs impact. On the net effect, would reiterate Fabio Giornois told that we are expecting in the ballpark of EUR 15,000,000 because we have applied price increase more recently.

They planned to be enforced across last month and this month, but they are not will be a full mitigation and compensation of the tariffs effect. But this is something that we are expecting, let’s say, better position us looking forward on 2026. In terms of performance of the household versus professional in The U. S, what’s the question?

Fabio DeLonghi, Chief Executive Officer, DeLonghi Group: Yes, I think the question, yes, I think household was slightly positive with coffee offsetting a decline in nutrition. 2024 was a record year for Nutribullet. This year, the market has slowed down a bit. Coffee performed very well, so strong performance across the different product lines for household business, also strong growth on coffee with our professional business. So professional, if you will, outperforming household on the back of the success of both brands in The U.

S, but still a very positive scenario for our coffee machines, where we perform well in all three product lines from pump to automatic to Nespresso.

Izako Brommilla, Analyst, Mediobanca: Okay. There was also a question on net working capital. If you can help us understand where it may land by the end of the year.

Fabio DeLonghi, Chief Executive Officer, DeLonghi Group: Sure. Yes. Nicolas, maybe you

Nicolas Seraphin, Group General Manager, DeLonghi Group: want to hand In this moment, the net working capital is affected by the stock anticipation that we have created mostly in The U. S. If we look at comparison year on year with June, we have €70.80000000 euros of more stock in this moment. And let’s say that 90% of this is related to The U. S.

And we have obviously a plan to mitigate to reduce this and to be in the level of in the operative level that we had also last year. So it will be there will be a bit more to related to the growth to sustain the growth, but this is our goal.

Izako Brommilla, Analyst, Mediobanca: Okay, clear. Thank you.

Conference Operator, Chorus Call: Next question is from Alessandro Cecchini, Equita.

Alessandro Cecchini, Analyst, Equita: Hello. Thank you for taking my questions. The first one is on China. China seems to me and also for you a very booming market for the coffee business. Do you think that also some other competitors, Australian competitors are, of course, focused in on this market, but it seems that you are really well performing.

So just can you elaborate a little bit more how much China now is weighted on total sales? And I mean, if you are continuing to see maybe a change in attitude of the Chinese consumer versus coffee given fiscal incentive that are, I mean, prompting people to acquire goods, etcetera. So just to understand because China market is relevant. My second question is instead of capital allocation, do you think that by year end, you can, I mean, execute something on the professional M and A? Or if not, you can maybe restart buybacks?

So just that you to elaborate a little bit more on these. And finally, on the Professional business, do you see, I mean, these high double digit to continue given the backlog given the order intake? Thank you.

Fabio DeLonghi, Chief Executive Officer, DeLonghi Group: China, no, a few comments on China. In China, new coffee bars are popping up everywhere. There is a growing appreciation for coffee related drinks, cold drinks, bubble tea and coffee. So the out of home consumption is very strong, increased competition between Chinese chains and Starbucks might have resulted in some margin compression for retailers, but it is enormously growing the out of the market. And the more people are exposed to coffee, the more they want to replicate it at home, in particularly new generations and middle class with available income, supported also by the government incentives.

So we see that probably China is now going through some different consumer spending partners from what we are seeing in other industry. I’m thinking of luxury goods or other industry, we see sometimes a slowdown in China. This is not happening in the household market. And actually, in the coffee segment, we see still a strong growth. We are benefiting from that.

This is also probably increasing the appetite from competition that will enter in the market. For the moment, I have to see that the longue is by far, I think, the leading brand in China. We have a very strong position, and we have some few Chinese competitor for the moment that might also see the entrance of other international players. But for the moment, we can rely also on a strong range, which may go from pump to pump grinder to fully automatic and where we retain a strong leadership. So we feel strong about the Chinese development, although the market is, as said, is changing quite rapidly.

The second question is about the capital allocation. There is no commitment from us in M and A before year end. We are certainly attracted by the professional coffee market. We’re very pleased with the developments of our coffee professional coffee division, and we will certainly want to play a more important role in the industry in the future. For the moment, although we keep open all different, let’s say, options of capital allocation, can be acquisitions as a priority.

If they don’t happen, we will continue considering buybacks as an alternative or returning dividends to the shareholders with always a priority to M and A because this is where we have we’re creating value. I think we have, I believe, a quite good track record of acquisitions and integration with Lama Zocco, Everseries and NutriBullet as well in the last six years. The growth in Professional, it’s sustainable. I think that it’s sustainable because we have a very unique product portfolio and a brand portfolio. Also looking at some competition, they posted quite weak results in the first half, both in top line and margins.

I think that the success of our results here relies on the positioning of Lamaazoco, the ability of Lama Zocco to manage social media and becoming a brand attractive for home consumers of espresso, passionate home consumers of espresso, who are now spending a lot in order to have their home Marzocco equipment. So that as well as the unique positioning of Evesys, which is a high ticket, high productivity, heavy duty, very reliable, heavy duty equipment. And probably is a smaller business compared to competition, and we think that we can definitely grow our position in a large market in the high end of the market. In terms of profitability, the growth sorry, the growth rate, we posted a plus 20% growth. There is no reason why we’re not seeing any slowdown for the moment.

But the thing is wiser to stick. Have outperformed our expectation in the first half in both top line growth and profitability. We reached record profitability levels, which we think are sustainable. But probably on the top line, we would feel more comfortable with a double digit growth for the remainder of the year.

Alessandro Cecchini, Analyst, Equita: Okay. Thank you. The last point, if I may, on The U. S. Because to me, it seems that you changed the approach to The U.

S. Market in the coffee business. So you are more marketing more products, more launches. So you are more aggressive in the market. And this is paying off because, as you said, you have a new competitor, but now you are delivering much better than when this competitor was not in the market.

So just to elaborate a little bit more this new according to my analysis, a new approach to The U. S. Market on the coffee business. And then finally, China on total sales now in the first half. Thank you.

Fabio DeLonghi, Chief Executive Officer, DeLonghi Group: No. The strategy is not changing, is probably evolving. I think the American espresso market is getting bigger and bigger in size. And probably, there is not one system that is prevailing on all, but there are many different systems, which are probably appealing in a different way to different consumer clusters. So we see that now the fact that we that the market is growing, it has been growing every single segment of our offering.

So we see that pump, pump grind is growing and is becoming more significant. Nespresso is growing and the capsule market is growing. At the same time, we are investing and we stay a lot behind our bean to cup solutions, which are also growing. So I think now we are probably starting seeing that the market is becoming bigger and every single segment of the market is becoming more relevant, more and so it’s just it’s great that we see that there is growth there, not in one segment and many different segments. And we think that the strategy that we always had to focus in every single cluster and segment of the special coffee machines is happy.

I have to say that also Llamazocos is doing very well in the out of home and in the home segment in The U. S. As well. So we think that we have a great brand portfolio and product portfolio to capture this growing interest in The U. S.

For espresso at home. With regards to China, there was a question about the weight of our China business is approximately 6%, including professional and household.

Alessandro Cecchini, Analyst, Equita: Okay. Thank you.

Conference Operator, Chorus Call: Next question is from Francisco Brilli, Intermonte.

Francisco Brilli, Analyst, Intermonte: Yes. Good evening. Thanks for taking my questions. Congratulations for the results. I have three questions.

The first one one is trying to understand the impact of ForEx on EBITDA going forward. There I was wondering if the impact we saw in the first two quarters we saw kind of no impact on EBITDA in the first quarter with more or less EUR 7,000,000 positive from ForEx on revenues and minus EUR 15,000,000 on revenues in the second quarter and being flattish impact on EBITDA. So this is something reasonable to assume also this proportion to assume also in the remainder part of the year? And the second question is on the impact of tariffs and the phasing of impact of tariffs in the second half of the year. Based on the fact you build up inventories to prepare for that, is it fair to assume some more impact, more skewed to the year end as you can use your inventories built up in the third quarter?

And the last one is on still on the Asia Pacific region. Again, I was wondering if you can provide us with some more color on on the different segment of the business to which we are responsible there? I mean, it’s still coffee, the very vast majority of the business in the Asia Pacific and and the relevance of also of other segments? And how much the La Marzocco have boosted the growth in the last few quarters there? Thank you.

Fabio DeLonghi, Chief Executive Officer, DeLonghi Group: Okay. So three questions. ForEx, you’re right. So there is a top line impact, but no impact at EBITDA level. So for us going forward, it makes more sense to speak about organic growth rather than actual growth in certain regions, given the fluctuations in currency that can go up and down, in particular U.

S. Now it appears that the U. S. Dollar now is tracking back, so might be a different impact in the next months. However, we are naturally hedged now at the EBITDA level, which really is what matters most.

Second on tariffs, we had an impact, minor impact now. We expect the majority of the impact around $10,000,000 in the next six months in the second half. With regard to APA, APA, Asia Pacific is a very diverse geography, where you have countries like Japan, Southeast Asia, China and Australia. In China, we are mainly focusing on coffee. I would say coffee is almost a totality of our sales, while in the other markets, we still have a major role for other categories.

Japan to name one, heating is still relevant, while in Australia, we sell almost the totality of the catalog from Cambodia to brown to comfort to other cooking and food preparation products.

Nicolas Seraphin, Group General Manager, DeLonghi Group: And last quarter, the impact of the Marzocco in that time?

Fabio DeLonghi, Chief Executive Officer, DeLonghi Group: The impact on in Asia Marzocco has a strong position in Australia, in China, for sure, is a growing presence. They have established recently in Singapore a new headquarter for the region, a new branch, but it’s helping, but still is representing just 14% of the total group sales.

Izako Brommilla, Analyst, Mediobanca: Okay.

Francisco Brilli, Analyst, Intermonte: Thank you very much.

Conference Operator, Chorus Call: Next question is from Natasha Brilliant, UBS.

Natasha Brilliant, Analyst, UBS: Thank you very much for taking my questions. I have three. So firstly, on pricing. So if I understand it correctly, you’ve put price rises through in The U. S.

From June. Can you just remind us of the sort of average price increase by category? And have you raised prices anywhere else, any other geographic markets? That’s the first question. Second question, has the promotional environment changed at all, particularly in Q3?

Has there been an increase in promotional activity in any categories or anything to talk about there? And then the last question is on Eversea’s and if there’s any update, you’re having any more conversations with Starbucks around that potential contract? Thank you.

Fabio DeLonghi, Chief Executive Officer, DeLonghi Group: Okay. Okay. Thank you, Natasha. Maybe Nicole, you want to handle the first About question on

Nicolas Seraphin, Group General Manager, DeLonghi Group: price increase, obviously this is still an ongoing dynamics because still we are waiting for some for the settlement of some of the tariffs from some countries, some news about Thailand are happening as we speak. And obviously, there are some geographies that are relevant for us. Obviously, we have the supply from Europe that is significant for coffee, but for about Nutrition, China, Indonesia, Thailand and Cambodia are relevant as well to us. For the time being, we have done in June, it is something on the ballpark of high single digit on the 10% space for coffee and something similar for nutrition. Probably in nutrition, there is a bit more of a pressure in this moment.

Despite this, it’s very likely that we’ll be affected by higher tariffs because Indonesia, Thailand and China as well has higher tariffs than Europe. But the market trend in this moment is putting a lot of pressure in terms of costs. So we are looking to go above 10% in terms of price increase to offset the 2019% to 30% of tariffs, but this will be there will be a bit of challenge. For the time being, we are more or less on the ballpark of the 10% of price increase. In terms of promo environment in Q3, challenging.

Promo is there. Promo has been already significant pressure also in Q2 and Q1. We have to say that the Prime Day time, if we consider Prime Day in the start of Q3, early July, Prime Day was a bit extended through all retailer. It was not anymore an Amazon event, and it has built a bit of promo pressure. So we are expecting back to school and then Prime Day two and Black Friday as a significant extension of the promo time and days.

Prime Day was more days or days, four days instead of two, and it went across all the retailer landscape. So promise there and growth can come also from some activities on the on promotions.

Fabio DeLonghi, Chief Executive Officer, DeLonghi Group: So the last question was on Everest with Starbucks. No, the discussion with Starbucks have ended. They said we should resume discussions at a point of time in 2026 when they start thinking of ’27, 2028. No, for the moment, I have very little expectations on the Starbucks, let’s say, deal and contracts. But I would like to highlight that despite that, obviously, there’s refocused on the core business.

We have strengthened the management lineup and we posted very strong results. So I think that looks like there is enormous potential for average range in particular with Cameo and the E line that have been very successful. We are now launching the new upgrade version for legacy and which is opening an opportunity in new channels of distribution like Horeca or like smaller locations. And at the same time, I think that they know how that we have built with Starbucks on cold drinks will be exploited in a new launch that will be announced at the Milano Fair soon. So we feel strong about the opportunity offered by Code, probably won’t happen with Starbucks as of now, as we had previously hoped, but the company will benefit from the same know how that we have built and will capitalize on that throughout the launch of innovation in the next months.

Natasha Brilliant, Analyst, UBS: Okay, got it. Thank you. If I can just come back on Nicolas’ points about the pricing, just to confirm that’s just U. S. You were talking about the high single digit 10%, there hasn’t been any other price increases outside of The U.

S?

Nicolas Seraphin, Group General Manager, DeLonghi Group: No, we didn’t apply. We honestly, full transparency, we do not see space on price increase in any other geographies to compensate U. S.

Natasha Brilliant, Analyst, UBS: Okay, got it. Thank you.

Conference Operator, Chorus Call: Next question is from Hela Zarok, ODDO BHF.

Hela Zarok, Analyst, ODDO BHF: Yes, thank you. Good afternoon and thank you for taking my questions. I have two follow-up questions, if I may. The first one is on the Professional Coffee segment. Could you please give us the split of growth between Everestis and Lamazo Co in Q2?

And the second one is on Mutibullet. Could you please give us more color about The U. S. Apart the high comparison basis? Did you see a slowdown in demand?

And have you lost market share in the profit of your main competitor, Ninja, who is gaining market shares? And what should we expect for Motibullet going forward? Thank you.

Fabio DeLonghi, Chief Executive Officer, DeLonghi Group: No, on Professional, both brands posted pro form a organic growth. I think that just as a guidance, EverSeas has outperformed in the first six months, Lama Zocco, but both were very strong, very strong. In Nutribullet, we had a negative sales for Nutribullet in The U. S, but Nutribullet won market share versus Ninja in the segments where And we also grew the market share in Europe. And to a point that we can probably claim that also outside of The United States, we are excluding China where blenders are different because our blenders that are used to make soybean milk.

If we exclude the China, which is a total different technology, we can claim now the number one position in Thanks the to the nice growth in most of the geographies of NutriBullet.

Hela Zarok, Analyst, ODDO BHF: Okay. Thank you very much.

Conference Operator, Chorus Call: Next question is from Luca Bacoccioli, Intesa Sanpaolo.

Fabio DeLonghi, Chief Executive Officer, DeLonghi Group0: Hello. Good evening, everyone. Two follow-up question from my side and then one straightforward question regarding the follow-up on tariffs. I was wondering if you can just elaborate a bit on the assumptions when you say that in 2026, tariff headwinds won’t be so relevant. So are you assuming that that is at 10% in Europe, 30% in China, 32% in Indonesia?

Just to understand because this is a moving part of scenario and it’s better to know how all the elements are moving. And the other follow-up is on China. You mentioned basically two drivers behind the booming demand, which is happening in the last two quarters actually. One is the fiscal incentives and the other one is the consumer behavior changes. So what those two elements is prevailing on the other, if any?

And finally, the third question regards the Cambodia brand, which is doing very well since the last four quarters. And the question is, how do you explain this comeback from Cabo? Is this because previously, was performing not very well because you renewed the category product, the mix of those two elements or there’s something else? Thank you.

Fabio DeLonghi, Chief Executive Officer, DeLonghi Group: Thank you, Luca. On the tariff, Nicolas you want to handle this. You have already few tariffs, Hans.

Nicolas Seraphin, Group General Manager, DeLonghi Group: No, the point is that we are assuming the current level of tariffs, so it’s 15%. In Europe, the 30% in China, now Indonesia and it seems that Thailand is just getting 19% of Thailand as well as we speak. This is the assumption that we see. Obviously, the impact in 2026 can be a bit softer than 2025, let’s say, aiming to have a good carryover of pricing. But obviously, the challenge of pricing, as I mentioned before, it’s there.

Then there was a okay, about China, the fiscal incentive is there, indeed it has happened, but consumer changes is probably more long lasting than the fiscal incentive.

Fabio DeLonghi, Chief Executive Officer, DeLonghi Group: I think there is no incentive. They can go these people buy products they don’t need

Nicolas Seraphin, Group General Manager, DeLonghi Group: or they don’t want. Yes, this is And the fiscal incentive is, let’s say, high let’s say, is double digit, but it’s still there. We know how much it is. And in any case, it’s eventually testing a different price point. And let’s say, a relevant possibility to address a larger volume of our consumers.

So we are positive from this point of view. About Camo, definitely there has been few product launches that are igniting new opportunities. Go Collection that is going beyond the food processor, now it’s expanded to three segment of product is performing well received by the trade and performing well, getting back shelf space at the trade level. And we have also an important program in premium kitchen machines where we are getting we see signal of positive response from the market.

Izako Brommilla, Analyst, Mediobanca: Okay. Thank you.

Conference Operator, Chorus Call: Mr. DeLonghi, there are no more questions registered at this time.

Fabio DeLonghi, Chief Executive Officer, DeLonghi Group: Okay. So as there are no more questions, I want to thank you all for attending the DeLonghi First Half results conference call. Thank you so much.

Conference Operator, Chorus Call: Ladies and gentlemen, thank you for joining. The conference is now over. You may disconnect your telephones.

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