DeLonghi Full-Year Report 2022

The performance reflects lower volumes and a worsening of the mix which was only partially offset by a positive price effect and the strengthening of the main export currencies which boosted revenues (-5.9% at constant exchange rates).

EBITDA before non-recurring/stock option costs came to €362.0 million (11.5% of revenues), lower than the €515.0 million (16.0% of revenues) recorded in 2021. The fourth quarter showed recovery with EBITDA before non-recurring/stock option costs reaching €150.0 million (14.6% of revenues) versus €158.0 million (14.7% of revenues) in the same period of the prior year.

The general market saturation and the ensuing revision of growth forecasts resulted in a high level of stock at trade and the Group’s warehouses which was addressed, beginning in the second half, by taking targeted action to contain inventory with a strong slowdown in production and purchases.

The geopolitical instability also created problems in supply chain management and caused an increase in logistics costs. The Group’s results were impacted by these issues; furthermore, the high level of inventory, caused by overly optimistic stock planning, along with a slowdown in sales, made it necessary to reduce production which caused inefficiencies and an increase in certain costs relating mainly to warehouse rents and handling services.