Elica continues to invest in its future but the present, or perhaps it would be better to say the recent past, does not yet reward the courageous efforts of the Fabriano company. In the first half of 2024, turnover fell by 6.3% but on closer inspection the second quarter (- 4%) went better than the first quarter.
What has improved? Production for third parties (OEM) which grew by 9.3% in the second quarter also in the Engines segment thanks to new customers in America and sales of own brand products also in America. The weakness of demand depresses sales and margins especially in Europe and the Middle East where Elica generates 80% of its turnover. In the Cooking division, own brand sales fell by 10% between the first half of 2024 and that of 2023
“In the ventilation sector, market shares have increased. However, the margin declined from 10% in the first half to 7% in the second half. The company attributes this drop to a negative price mix and intense promotional activity, as stated in their press release. Additionally, the accounts for the first half were impacted by significant investments in rebranding, product repositioning, and participation in Eurocucina. Despite these challenges, the EBITDA decreased from 14 million in the first half of 2023 to 5.1 million in 2024. On a positive note, the margin appears to have improved from 1.5% in the first quarter to 2.8% in the second quarter,
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Elica NikolaTesla FlameThe first gas extractor hob.
The first gas extractor hob.
The magic of flames combined with powerful technology. Introducing the first-ever gas extractor hob that combines a bottom extraction system with conventional burners. In complete safety: this appliance complies with all regulations concerning flame efficiency and power, while still delivering exceptional performance. The cast iron elements merge aesthetics with functionality, and the cross-shaped, closed, flat burner grates provide a stable surface for pots and allow you to effortlessly move them on the hob. The cast iron filter cover doubles as a unique trivet; the optional wok support stand allows you to expand your cooking repertoire. The integrated extraction system clears the air of smoke and unpleasant odours, also automatically, thanks to the multi-purpose grease, odour and moisture filter which ensures maximum efficiency and effortless maintenance.
Elica invests in its future
Elica is forging ahead with its strategic investments, despite facing current market challenges. The launch of Elica’s expanded product line, dubbed “Extraordinary Cooking,” has been well-received by the media. Yet, the overall market conditions remain tough, and this is reflected in Elica’s first-quarter sales figures: a turnover of 117 million euros marks an 8.5% decrease from the same period in 2023, albeit a 4% increase from the preceding quarter. Despite a 6.9% uptick in the US market, it does not offset the sales slump across Europe and beyond, in both volume and value.
The Cooking division saw a 6.2% downturn, impacting even the Own brands segment, which had previously shown robust performance. The Motors division fared even worse, with an 18% decline.
Price pressures have significantly eroded profit margins, with adjusted EBITDA plummeting by 40% compared to the first quarter of the previous year. The net income also took a hit, landing at 440 thousand euros, a steep fall from the 3.9 million euros recorded in the first quarter of 2023.
Nevertheless, Elica’s leadership remains undeterred, securing a 70 million euro loan to fuel future growth initiatives.
Elica aims to grow in the Cooking market
Elica is indeed making significant strides in the global cooking market with their innovative approach. The Lhov appliance is a remarkable example of their ingenuity, combining a hob, hood, and oven into a single unit1. This 3-in-1 appliance is designed to revolutionize the cooking experience with its super linear design, black glass aesthetics, and performance that is flush with kitchen units. It offers different cooking methods and areas, an intuitive touch screen, and an advanced extraction system that captures vapors and odors from both the hob and oven1.
The Virtus Multi 60 DD oven is another testament to Elica’s commitment to innovation and design, having won the “Archiproducts Design Awards 2023” in the Product & Interior Design category2. This oven features a hydrocleaning system, rotary dial operation, and a range of functions including a pizza setting, conventional grill, fan grill, and more, all within a 65-litre capacity and an energy efficiency rating of A+2.
Elica’s new positioning and brand identity reflect their evolution and ambition to be a leader in the cooking sector. With a focus on R&D and marketing activities, they aim to achieve revolutionary results in cooking appliances. The company’s investment of over 40 million Euros over three years signifies a major turning point for the brand3.
Their journey, which began with the NikolaTesla extractor hobs line in 2016, is now enhanced by cutting-edge strategies and products. Elica’s Chairman, Francesco Casoli, emphasizes the company’s historic attitude to challenge the ordinary and their goal to become a key player in the sector, offering solutions that are beautiful, functional, user-friendly, and driven by creativity, technological innovation, and design3. Their Italian know-how remains a significant value-adding factor, highly appreciated on an international scale3.
It’s clear that Elica is dedicated to providing innovative solutions that cater to the needs of modern kitchens, and their presence at Eurocucina 2024 is a showcase of their latest advancements in the cooking market.
Elica results
Elica Spa has approved the results for the first half of 2023 – prepared in accordance with the IFRS international accounting standards. Revenues fell 12% from 290 to 254.5 million. EBITDA has also fallen in line, which continues to represent almost 10% of turnover. Preserving gross margins has been an important success for the group, achieved thanks to strategic initiatives implemented in recent years, such as constant cost control, flexibility deriving from the new production footprint and the “Supply Chain Finance Solution” project for better management of circulating. Margin expansion, with a significant increase of 80 basis points between the prior first and second quarters, confirms the commitment to sustained profitability and operational excellence.Profit fell 38% from nearly $14 million to $8.5 million The Cooking division, which represents 76% of total turnover, recorded a drop of -15%. Also in the second quarter, own brand production partially compensated for a strong reduction in demand in the OEM area
The Engines division, which represents 24% of total turnover, shows the first signs of a slowdown, showing a slight contraction in sales equal to -2.8%. The “ heating ” and “ ventilation ” areas , and in particular the heat pump segment, continue to represent segments with high profitability and significant diversification opportunities. Sales in EMEA, which represents 80% of total revenues, recorded a decrease of -10.9%, thus aligning Elica’s performance with that of the market.
“In a difficult macroeconomic context, the whole group has demonstrated its ability to face challenges with great speed, managing to defend margins and not slow down on strategic projects. We will also face the next few months with the usual passion, being ready to accelerate when the recovery occurs. I am sure that the team, the completion path of the cooking product range and the opportunities of the engine division will support growth in the long term and will continue to create value for shareholders and our stakeholders” . declared Francesco Casoli
Elica Results
Elica BoD approves the Q1 2023 results. “Despite a significant market decline, we are pleased to report results in line with expectations. Our approach has been focused on the long-term value, allowing us to defend margins in a market with low volumes and significant inflation. Additionally, we have continued our transformation and expanded our offerings to become more Cooking. In this environment, the “Own Brand” business is performing better than the market and our “Motors Division” continued to grow. Although the year ahead may be challenging, we are confident that we will come out even stronger and well prepared for the future.” commented – Giulio Cocci Elica CEO.
Elica partnership with Ilve
Elica Spa announced Tuesday that it has entered into a strategic partnership with Ilve that will allow the company to grow in the world of home cooking by also marketing induction ovens and hobs.
Ilve is an Italian company specializing in cooking systems that “has distinguished itself over the years for its vocation for innovation and technical wisdom in steel processing, combined with continuous research in the field of processes and technologies. Together with Ilve, Elica will espouse a philosophy of transition to new markets that will bring both companies and expand their business,” said Elica.
Elica’s stock is up 1.4 percent at EUR2.86 per share
Elica presents the 2022 Sustainability Report
Elica spa has published the 2022 edition of the Sustainability Report under the slogan “Aspira, Inspira” which represents the ability to continuously imagine innovative and sustainable solutions for the future because every great idea, just like every great company, is born from an inspiration . Improving air quality has always been the starting point. Inspiring people and your target market is the next step.
Despite the difficult context, Elica achieved particularly challenging goals in 2022, breaking its own records for the second consecutive year. The consolidation of its global leadership was made possible by excellent management and financial performance and by a strategic “Sustainability Roadmap” based on three pillars: production and products with low environmental impact, people and governance.
During 2022, the Group used 100% renewable energy in almost all of its production sites in Italy and Poland. This policy has been accompanied by some energy efficiency projects which have contributed to further limiting our carbon footprint.
Elica record sale’s
Elica BoD approves the preliminary FY 2022 results.
Second Record Year in a row in terms of sales, EBIT margin, and net profit, despite the most adverse inflationary, demand, and geopolitical scenario of the last decades.
The company was able to improve margins versus last year, despite ~60 million of cost inflation, thanks to the business model flexibility and the agile execution of our turnaround projects.
Looking forward to 2023, it will be an even more challenging year, but we have a clear strategy for both the Cooking and Motor Divisions in terms of products, customers, and regional distribution.
Elica success story
Elica is today the global leader in the sector of kitchen extractor hoods. They have managed to record numbers
Elica has achieved the right mix of financial soundness and Italian design & innovation soul:
✔️ we are expecting to close 2022 with incremental revenues and margin, in spite of inflation, geopolitical tensions and weak demand,
✔️ Elica are back to a sustainable long term dividend distribution plan aimed at preserving strategic investments and external growth,
✔️ looking for new M&A or joint venture opportunities to grow their cooking business,
✔️ Elica are leading the ecological transition in the HVAC industry with their BU Motors EMC FIME (representing 25% of the Group’s turnover, with a 30% growth rate).
Year after year, Elica have been expanding our value proposition and increasing their innovation rate, proving vision and resilience even in uncertain times.
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