Elica increases its Chinese control to 100%. The household appliance manufacturer has acquired the remaining 0.56% of the share capital of Elica Home Appliances (Zhejiang, Putian) from Fuji Industrial Co., already its partner in the Japanese joint venture Ariafina.The price agreed with Fuji corresponds to the amount originally paid by the counterparty upon its entry in 2012, equal to 1.9 million euros, consistent with the initial agreements and with the path of the joint venture, managed independently by Elica, also through recapitalization operations
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Beyond Performance: Elica’s Lhov & NikolaTesla One HP Transform Cooking
Elica, a global leader in kitchen ventilation and cooking appliances, is transforming the heart of the home with its bold, modern vision. Their latest innovations, Lhov and NikolaTesla One HP, go beyond mere performance, making beauty and creative freedom central to the kitchen experience. Whether your style is sleek and urban or classic and traditional, Elica’s range seamlessly adapts to any aesthetic.
Innovation at Its Core: Lhov and NikolaTesla One HP
Among Elica’s standout offerings is the Lhov, an all-in-one system that masterfully integrates an oven, hob, and extractor. Its minimalist design effortlessly blends into any kitchen, highlighting the clean lines and elegance of your culinary space. The Lhov boasts an oven 30% larger than conventional models, allowing you to cook bigger dishes or utilize two hobs simultaneously for unmatched flexibility.
For cooktops, the NikolaTesla One HP stands as an icon, recognized with the prestigious Compasso d’Oro award. This extractor hob marries clean lines with sophisticated materials to elevate your cooking. It redefines the kitchen by harmonizing aesthetics and powerful performance, turning every meal preparation into an exceptional moment.
Smart Features for Culinary Exploration
Elica’s smart features encourage experimentation and fun in the kitchen while delivering professional results. The Lhov’s AirFry mode provides crispy fries or croquettes with minimal oil. Meanwhile, the NikolaTesla One HP’s Tasty Fry optimizes temperature for faster, healthier, and more delicious frying. Another brilliant feature is the Melting mode, which keeps temperatures below 50°C, allowing you to melt butter or chocolate unattended without the risk of burning.
Elica: A Legacy of Leadership
For over 50 years, Elica has been an Italian pioneer, now a world leader in kitchen extraction systems. With 2,600 employees across sites in Italy, Poland, Mexico, and China, the company continues to combine cutting-edge design, innovation, and performance under the leadership of Francesco Casoli.
Elica net profit falls
Elica closed 2024 with a group net result of 9.4 million euros (11.3 million in 2023), revenues of 452.1 million (down 4.5% on the previous year), an Ebidta of 31.4 million (7% of revenues) and an Ebit of 8.1 million euros. This was announced in a press release from the group, after the board of directors approved the financial statements for the 2024 financial year. The net financial position at 31 December 2024 was -46.8 million euros, down 13.2% compared to 2023
Elica limits the drop in turnover thanks to OEM sales
Elica closes the third quarter with a contraction of ‘only’ 1.1% thanks to the excellent performance of the Engine Division (+9%) which gained market share in Europe. The bet on Cooking is slow to pay off: in the January-September period, despite the award-winning models of the Nikolatesla and Lhov lines, sales fell by 4% (very weak demand in Europe, improvements in the USA).
The balance of the very difficult first nine months of 2024 sees a drop of almost 5% in turnover, down to 342 million euros and margins in line with expectations. The Fabriano group does not give up and finances an intense promotional activity and investments in its own brand lines with careful cost control. The margin on revenues in the first nine months was 7.2% against 10.4% in 2023.
Whirlpool India acquires 10% of Elica’s local subsidiary
Elica announces, in a note, that it has signed an agreement that provides for “the sale to Whirlpool of India Limited” of 4.78% of the share capital of the Indian subsidiary Elica Pb Whirlpool Kitchen Appliances Private Limited (‘Elica Pb India’) together with the other Indian minority shareholders who are selling a further 4.78% stake. The agreement for the sale, the note states, was reached for approximately 8.2 million euros. “Upon completion of the transaction, Whirlpool of India Limited will hold approximately 96.81% of Elica PB India” while Elica SpA and the group of other Indian minority shareholders will remain shareholders of the Indian company with a stake of approximately 1.59% each. At the same time as the purchase of the stake, Elica Pb India will sign new licensing agreements for the use of the Elica brand in Indian territory.
Elica’s ‘castling’: triple vote to long-term shareholders
The Shareholders’ Meeting of Elica voted on an amendment to the company bylaws that grants two voting rights per share to shareholders who have held the stock for at least two years from their registration in the Shareholders’ Register and 3 rights to those who have held them for three years.
The aim, the company writes, is to “reward the long-term commitment of its shareholders and maintain and strengthen the reference shareholder base”, in practice the core shareholders such as the Casoli family .The change in fact makes a hostile ‘raid’ or a takeover bid on the Marche-based company practically impossible.
In this period, the Elica stock is at an all-time low: around 1.7 euros compared to 5.8 in the first days of listing in 2006, and its capitalization is around 100 million euros against a 2023 turnover five times high
Elica suffers in the second quarter
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,
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.
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