INTERIM FINANCIAL
REPORT AT 30 JUNE
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The Interim financial report at 30 June 2025 has been translated from the Italian original solely for the convenience of international readers. The Italian version shall always prevail in case of any discrepancy or inconsistency between Italian version and its English translation.
Summary01 The De' Longhi Group Page 3
Corporate Bodies Page 3
Key performance indicators Page 4
02 03 03 | Interim report on operations Page 6 Half-year condensed consolidated financial statements Page 21 Consolidated financial statements: Consolidated income statement Page 21 | |
Consolidated statement of comprehensive income | Page 22 | |
Consolidated statement of financial position | Page 23 | |
Consolidated statement of cash flows | Page 25 | |
Consolidated statement of changes in net equity | Page 26 | |
03 | Explanatory notes | Page 27 |
03 | Certification of the half-year condensed consolidated financial statements pursuant to art. 81-ter of Consob Regulation 11971 | Page 72 |
dated 14 May 1999 and subsequent amendments and additions | ||
03 | External auditors' report on the limited review of the half-year condensed consolidated financial statements | Page 73 |
Board of Directors
FABIO DE' LONGHI President and Chief Executive Officer
SILVIA DE' LONGHI Vice President
MASSIMILIANO BENEDETTI** Director
FERRUCCIO BORSANI** Director
LUISA MARIA VIRGINIA COLLINA Director
CHRISTOPHE OLIVIER CORNU ** Director
CRISTINA FINOCCHI MAHNE ** Director
CARLO GARAVAGLIA Director
CARLO GROSSI ** Director
MICAELA LE DIVELEC LEMMI ** Director
STEFANIA PETRUCCIOLI Director
NICOLA SERAFIN Director
Board of Statutory Auditors
CECILIA ANDREOLI Chairman
ALESSANDRA DALMONTE Standing member
MARCELLO FRANCESCO PRIORI Standing member
GIANLUCA BOLELLI Alternate auditor
DANIELA TRAVELLA Alternate auditor
External Auditors
PricewaterhouseCoopers S.p.A. ***
Control, Risks, Corporate Governance and Sustainability Committee
MICAELA LE DIVELEC LEMMI ** Chairman CRISTINA FINOCCHI MAHNE **
Stefania Petruccioli
Remuneration and Appointments Committee CARLO GROSSI ** Chairman FERRUCCIO BORSANI**
Carlo Garavaglia
Independent Committee
FERRUCCIO BORSANI** Chairman and Lead Independent Director CARLO GROSSI **
Micaela Le Divelec Lemmi **
* The current corporate bodies were appointed during the Shareholders' Meeting held on 30 April 2025 for the three-year period 2025-2027.
** Independent directors.
*** Assigned by the shareholders' meeting of 19 April 2018 for the financial years 2019-2027.
KEY PERFORMANCE INDICATORSResults
(€/million) | 2nd Quarter 2025 | % | 2nd Quarter 2024 | % | Change | Change % |
Revenues | 829.0 | 100.0% | 764.9 | 100.0% | 64.1 | 8.4% |
Revenues at constant exchange rates | 841.8 | 100.0% | 763.0 | 100.0% | 78.8 | 10.3% |
Net industrial margin | 442.5 | 53.4% | 391.5 | 51.2% | 51.1 | 13.0% |
EBITDA adjusted | 124.4 | 15.0% | 110.9 | 14.5% | 13.5 | 12.2% |
EBITDA | 120.6 | 14.5% | 108.5 | 14.2% | 12.1 | 11.1% |
EBIT | 87.7 | 10.6% | 79.0 | 10.3% | 8.7 | 11.0% |
Profit (loss) pertaining to the Group | 59.3 | 7.1% | 54.8 | 7.2% | 4.4 | 8.1% |
(€/million) | 1st Half 2025 | % | 1st Half 2024 | % | Change | Change % |
Revenues | 1,584.2 | 100.0% | 1,423.7 | 100.0% | 160.5 | 11.3% |
Revenues at constant exchange rates | 1,589.1 | 100.0% | 1,421.0 | 100.0% | 168.1 | 11.8% |
Net industrial margin | 837.3 | 52.9% | 726.8 | 51.1% | 110.5 | 15.2% |
EBITDA adjusted | 240.7 | 15.2% | 204.7 | 14.4% | 36.0 | 17.6% |
EBITDA | 232.5 | 14.7% | 199.7 | 14.0% | 32.8 | 16.4% |
EBIT | 167.9 | 10.6% | 143.7 | 10.1% | 24.1 | 16.8% |
Profit (loss) pertaining to the Group | 116.6 | 7.4% | 106.2 | 7.5% | 10.4 | 9.8% |
Household division | ||||||
(€/million) | 1st Half 2025 | % | 1st Half 2024 | % | Change | Change % |
Revenues | 1,364.0 | 100.0% | 1,280.5 | 100.0% | 83.5 | 6.5% |
EBITDA adjusted | 182.1 | 13.3% | 172.4 | 13.5% | 9.6 | 5.6% |
Professional division | ||||||
(€/million) | 1st Half 2025 | % | 1st Half 2024 | % | Change | Change % |
Revenues | 222.2 | 100.0% | 144.8 | 100.0% | 77.4 | 53.5% |
EBITDA adjusted | 58.6 | 26.4% | 32.3 | 22.3% | 26.4 | 81.6% |
Statement of financial position
(€/million) | 30.06.2025 | 30.06.2024 | 31.12.2024 |
Net working capital | 58.0 | 1.6 | (96.9) |
Net operating working capital | 208.3 | 138.6 | 84.9 |
Net operating working capital/Revenues | 5.7% | 4.3% | 2.4% |
Net capital employed | 1,660.7 | 1,702.8 | 1,621.2 |
Net financial assets | 345.8 | 305.3 | 643.2 |
of which: | |||
- net bank financial position | 475.2 | 408.7 | 746.1 |
- other financial receivables/(payables) | (129.4) | (103.4) | (102.9) |
Net equity | 2,006.5 | 2,008.1 | 2,264.4 |
Introduction and definitions
This report contains forward - looking statements, specifically in the "Outlook" section which, by nature, have a component of risk and uncertainty as they depend on future events and developments. At the date of this report, there is a high level of uncertainty which calls for caution when making economic forecasts as the economic prospects continue to change. The actual results could, therefore, differ from the forecasted ones.
Unless otherwise specified, the values and comments in this document refer to the De' Longhi Group in its current configuration, which includes the La Marzocco Group, whose aggregation became effective as of March 1, 2024. Some analyses, particularly in comparative terms, may be affected by the change in the consolidation area, which resulted, for the first semester of 2024, in a partial contribution from La Marzocco.
The figures at constant exchange rates are calculated excluding the effects of converting currency balances and the accounting of derivative transactions.
In the first half of 2025 the De' Longhi Group posted revenue growth and good margins in what was a complex and volatile environment which confirms the Group's ability to react positively to market dynamics.
Revenues amounted to €829.0 million in the second quarter of 2025, an increase of 8.4% compared to the same period of 2024, despite a particularly adverse exchange effect (+10.3% at constant exchange rates).
In the first six months of the year revenues were 11.3% higher (+11.8% at constant exchange rates) than the €1,423.7 million recorded in the first half of 2024, coming in at €1,584.2 million.
Household reported revenues of €1,364.0 million, an increase of 6.5% compared to the first half of 2024. The Professional division contributed €222.2 million to revenues, posting an increase of 53.5% against the same period of 2024 during which the La Marzocco Group was, however, only partially consolidated. On a pro-forma basis, revenues were 23.5% higher in the first half of 2025.
The uncertainties relative to trade and tariffs caused by US policies, the ongoing pressure on the supply chain, the geopolitical tensions and currency volatility impacted world trade resulting in a generalized, global economic slowdown. In this context, the Group reacted by increasing the flexibility of its production platforms and strengthening partnerships with key suppliers to address uncertainties arising from the current geopolitical landscape and minimize the impact of tariff policies.
The first few months of 2025 were also impacted by significant consumer caution, in the face of persistent, albeit lower, inflation and larger economic uncertainty which resulted in more cautious spending, above all for discretionary consumer goods.
The small appliances market, however, proved to be resilient. More in detail, consumers demonstrated a propensity to invest in high quality products that improve the home experience which benefitted, above all, the product lines in which the Group has a consolidated leadership position.
In this backdrop, the De'Longhi Group demonstrated, once again, that it can count on its expertise to provide the market with leading segment products, a flexible and efficient supply chain, manufacturing know-how, an international presence and its people.
Revenues were positive across all the geographical areas in which the Group operates.
Europe recorded revenues of €490.9 million in the second quarter and €960.6 million in the first half, an increase of 9.1% and 9.9%, respectively, against the comparison periods. The performance reflects, above all, the good trend in coffee.
In what was an uncertain global market environment, in the second quarter of 2025 revenues in Americas rose 6.3% against 2024 to €152.8 million (+11.1% at constant exchange rates) and in the first half revenues were 11.6% higher (+13.3% at constant exchange rates) than in 2024, coming in at €278.3 million.
In Asia Pacific revenues amounted to €134.0 million in the second quarter, an increase of 10.0% against the same period 2024 (+16.0% at constant exchange rates). Revenues in the first half rose 15.8% (+18.9% at constant exchange rates) to €244.7 million.
Lastly, despite geopolitical tensions in the area, MEIA closed the second quarter with revenues at €51.4 million, 3.6% higher than in the same period of 2024 (+8.7% at constant exchange rates); in the first half revenues were 13.3% higher than in 2024, coming in at €100.6 million.
Looking at the business lines, the growth was driven by coffee products which reported good progression in both the Household and Professional divisions.
Despite the positive performance of a few product families, particularly kitchen machines, the cooking and food preparation segment was down slightly.
Comfort was positive, thanks also to weather conditions which were favorable to the sale of portable air conditioning products, as was the irons segment.
In addition to higher volumes, in the first half margins benefitted from a positive mix effect which offset pressures on operating costs, particularly transport and logistics. Investments in advertising and promotional activities continued in order to support the performance of the Group's brands.
Adjusted EBITDA amounted to €240.7 million (15.2% of revenues) in the first half of 2025, higher both numerically and as a percentage of revenues compared to the same period of 2024 (€204.7 million or 14.4% of revenues).
In the six months, the Household division posted an adjusted EBITDA of €182.1 million (13.3% of revenues), higher numerically against the same period of 2024 (€172.4 million), and largely stable as a percentage of revenues.
The Professional division reported an adjusted EBITDA of €58.6 million or 26.4% of revenues, decidedly higher than in 2024 (€32.3 million, 22.3% of revenues).
Net the €12.8 million in profit paid to the minority shareholders who became part of the shareholder base as a result of the Eversys/La Marzocco business combination, the Group's portion of net profit came to
€116.6 million or 7.4% of revenues (€106.2 million or 7.5% of the revenues in the first half of 2024).
Net operating working capital was impacted by business seasonality which implies, at June 30, a physiological increase in values compared to the end-of-year levels, as well as early stocking in the American market in light of the current macroeconomic environment and stockpiling in strong growth markets (including, for example, Greater China).
The net operating working capital amounted to €208.3 million (5.7% of revenues), versus €138.6 million at 30 June 2024 (4.3% of revenues) and €84.9 million at 31 December 2024 (2.4% of revenues).
The positive net financial position with banks came to €475.2 million at 30 June 2025 (€408.7 million at 30 June 2024 and €746.1 million at 31 December 2024).
Net operating cash flow was positive for €11.2 million in the first half (€46.8 million in the same period of 2024).
Total cash flow was negative for €297.5 million in the first half of 2025 which reflects the payment of dividends for €191.1 million and the purchase of treasury shares for €60.6 million.
Group resultsThe reclassified De' Longhi Group consolidated income statement is summarized as follows:
(€/million) | 1st Half 2025 | % revenues | 1st Half 2024 | % revenues |
Revenues | 1,584.2 | 100.0% | 1,423.7 | 100.0% |
Change | 160.5 | 11.3% | ||
Materials consumed & other production costs (production services and payroll costs) | (746.9) | (47.1%) | (696.9) | (48.9%) |
Net industrial margin | 837.3 | 52.9% | 726.8 | 51.1% |
Services and other operating expenses | (431.2) | (27.2%) | (370.5) | (26.0%) |
Payroll (non-production) | (165.4) | (10.4%) | (151.7) | (10.7%) |
EBITDA adjusted | 240.7 | 15.2% | 204.7 | 14.4% |
Change | 36.0 | 17.6% | ||
Non-recurring income (expenses)/stock option costs | (8.2) | (0.5%) | (5.0) | (0.3%) |
EBITDA | 232.5 | 14.7% | 199.7 | 14.0% |
Amortization | (64.6) | (4.1%) | (56.0) | (3.9%) |
EBIT | 167.9 | 10.6% | 143.7 | 10.1% |
Change | 24.1 | 16.8% | ||
Net financial income (expenses) | 1.6 | 0.1% | 4.4 | 0.3% |
Profit (loss) before taxes | 169.5 | 10.7% | 148.1 | 10.4% |
Taxes | (40.1) | (2.5%) | (33.7) | (2.4%) |
Net result | 129.4 | 8.2% | 114.4 | 8.0% |
Minority interests | 12.8 | 0.8% | 8.3 | 0.6% |
Profit (loss) pertaining to the Group | 116.6 | 7.4% | 106.2 | 7.5% |
The reclassified income statement above differs in industrial margin for Euro 150.3 million in the first half 2025 (Euro 130.2 million in the first half 2024) from the consolidated income statement as, in order to better represent the period performance, production-related payroll and service costs have been reclassified from payroll and services, respectively, and non recurring expenses, when applicable, have been separately reported.
Revenues
Revenues amounted to €829.0 million in the second quarter of 2025, an increase of 8.4% against the same period in 2024.
The heightened currency volatility in the quarter had a negative impact on the performance of almost 2 percentage points; at constant exchange rates growth reached 10.3%.
In the first six months of 2025 revenues amounted to €1,584.2 million, an increase of 11.3% with respect to the 2024 comparison period (+11.8% at constant exchange rates). The performance benefitted from higher sales volumes, with a favorable mix of margins, despite very aggressive pricing by the competition. The Household division recorded revenues of €1,364.0 million (+6.5% versus the same period of 2024) thanks to the positive performance of coffee products, specifically the manual La Specialista line machines and Nespresso platform models.
As the consumer is increasingly more accustomed to an omnichannel approach to distribution, the De'Longhi Group has continued to work through both in-person and online retail channels. The percentage of online sales was higher than in the first half of 2024, showing progression also in comparative terms.
The Professional division contributed €222.2 million to revenues, an increase of 53.5% compared to the first half of 2024 during which, however, La Marzocco was only partially consolidated. On a pro-forma basis, the Professional division reported a 23.5% increase in revenues. Sales revenues for both the Marzocco and Everysys machines showed excellent growth after a weak 2024.
Markets and business lines
The performance of the commercial areas in which the Group operates (Europe, Americas, Asia Pacific and MEIA) is summarized below:
(€/million) | 2nd Quarter 2025 | % | 2nd Quarter 2024 | % | Change | Change % | Change at constant FX rates % |
Europe | 490.9 | 59.2% | 449.8 | 58.8% | 41.0 | 9.1% | 8.7% |
Americas | 152.8 | 18.4% | 143.7 | 18.8% | 9.1 | 6.3% | 11.1% |
Asia Pacific | 134.0 | 16.2% | 121.8 | 15.9% | 12.2 | 10.0% | 16.0% |
MEIA (Middle East/India/Africa) | 51.4 | 6.2% | 49.6 | 6.5% | 1.8 | 3.6% | 8.7% |
Total revenues | 829.0 | 100.0% | 764.9 | 100.0% | 64.1 | 8.4% | 10.3% |
(€/million) | 1st Half 2025 | % | 1st Half 2024 | % | Change | Change % | Change at constant FX rates % |
Europe | 960.6 | 60.6% | 874.2 | 61.5% | 86.4 | 9.9% | 9.5% |
Americas | 278.3 | 17.6% | 249.4 | 17.5% | 28.9 | 11.6% | 13.3% |
Asia Pacific | 244.7 | 15.4% | 211.3 | 14.8% | 33.4 | 15.8% | 18.9% |
MEIA (Middle East/India/Africa) | 100.6 | 6.4% | 88.8 | 6.2% | 11.8 | 13.3% | 14.3% |
Total revenues | 1,584.2 | 100.0% | 1,423.7 | 100.0% | 160.5 | 11.3% | 11.8% |
Revenues in Europe reached €490.9 million in the second quarter (+9.1% against the 2024 comparison period) and €960.6 million in the first half (+9.9%).
Coffee products maintained a positive trend thanks, above all, to the good performance of the capsule models and the most recent manual bean-to-cup machines which benefited from growing consumer interest. Portable air conditioners reported positive results, including in terms of the sell-out, thanks to a positive start to the summer season. Looking at cooking and food preparation products, despite what continues to be a weak market, Kenwood brand products recorded good results supported by the launch, limited to a few markets and select channels, of the new version of the Cooking Chef. In Europe Nutribullet personal blenders, recorded positive results in the first half of 2025 which testifies to consumers' growing interest. More in detail, good results were recorded in Spain, Italy and Poland.
The Professional division reported a positive trend. Eversys closed the half higher, above all in the English market and in Germany. La Marzocco benefited from a good performance in Germany, Italy and UK.
Americas reported revenues of €152.8 million in the second quarter of 2025 (+6.3% against 2024 or
+11.1% at constant exchange rates) and of € 278.3 million in the half (versus €249.4 million in the first half of 2024).
With regard to the Household division, the positive results recorded in Canada stand out; the US market, however, was impacted by weakening demand due to decreased discretionary spending tied to macroeconomic pressures. Consequently, despite the good performance of fully automatic coffee and Nespresso platform products, revenues were lower. More in detail, there was a contraction in the personal blender segment and other Nutribullet products despite good relations with retailers and targeted management of the commercial initiatives.
Revenues for the Professional division increased significantly due to the change in the scope of consolidation, as well as the good results reported in the United States linked to the increased sales of Eversys products and the decided acceleration in La Marzocco's pro-forma sales.
In Asia Pacific revenues amounted to €134.0 million in the second quarter of 2025 (+10.0% versus 2024, or +16.0% at constant exchange rates) and to €244.7 million in the first half (+15.8% versus the first half of 2024, or +18.9% at constant exchange rates).
Looking at the Household division, despite the negative exchange effect which had a negative impact primarily in the second quarter, Greater China posted a solid performance thanks to strong investments in communication activities and marketing, as well as a government policies enacted to sustain consumption. Sales for coffee products expanded, both for fully automatic and manual machines. Cooking and food preparation was, however, weaker. The trend in Japan was, overall, positive thanks, above all, to the sale of fully automatic coffee machines. In Australia, despite the positive performance of the manual coffee machine segment (La Specialista), revenues were impacted by weak demand. Lastly, sales in Korea were down slightly compared to the first half of 2024 following the reorganization of the product range, prices and advertising in order to guarantee greater protection of margins.
The Professional division recorded a positive performance thanks to the increased sales in Greater China, supported also by government subsidies which benefitted La Marzocco's home division, along with the growth posted by Eversys.
Despite the area's instability, MEIA recorded revenues of €51.4 million in the second quarter (+3.6% compared to the second quarter of 2024) and €100.6 million in the first half (+13.3% compared to the same period of 2024).
The Household division posted a positive performance thanks to increased revenues in the main markets; more in detail, coffee products (fully automatic and manual machines) and handblenders drove growth in the United Arab Emirates, Saudi Arabia and South Africa. Recovery was recorded in Turkey.
The increased revenues reported by the Professional division reflects the contribution of La Marzocco.
Looking at the business lines, growth was driven by coffee products which reported solid progression for both the Household and Professional divisions.
As for the Household division, manual machines reported a good performance, particularly those with an integrated coffee grinder which highlights the noticeable opportunities for expansion in the premium segment of manual espresso machines. While still in positive territory, the fully automatic coffee machine family reported a slowdown due, above all, to the aggressive price policies of the competition.
The Professional division, which benefitted from the change in the scope of consolidation in the half, reported sustained growth. Eversys contributed with a good sales performance and in some of the core markets recorded an increase in volumes, as well as improvement in terms of price and product mix. La Marzocco reported positive results for both the bar machine segment and the household machines.
The cooking and food preparation segment was down slightly overall with respect to the comparison period 2024 in what was a mature market. Innovation and investments in advertising will prove key to stimulating demand. Kenwood brand kitchen machines and air fryers performed well. The Nutribullet personal blender family was impacted by the uncertainty of the US market and the macroeconomic pressures. The expansion in international markets, however, benefitted from the Group's solid presence which drove growth, making it possible to gain new market share.
Comfort and irons reported positive results thanks to favorable weather conditions and the introduction of new models.
Profitability
In the first half of 2025 margins benefitted from higher volumes and a favorable mix which offset the impact of strong competition (with respect to pricing) and the increase in costs for transport and logistics services.
The results for the first half were affected by the increase in tariffs imposed by the United States. The impact of the latter was offset by projects calling for diversification in production and careful price management.
Investments in advertising and promotional activities continued with a focus on targeted actions to support brands; more in detail, collaborations with the brand ambassadors continued and investments were made in subsequent phases of the "Perfetto" campaign.
Both divisions posted good margins with an acceleration in Professional's EBITDA.
In the second quarter of 2025 the net industrial margin amounted to €442.5 million, or 53.4% of revenues, an improvement compared to the same period in 2024 (€391.5 million, 51.2% of revenues). The net industrial margin came to € 837.3 million, or 52.9% of revenues, in the half compared to €726.8 million or 51.1% of revenues in the first half of 2024.
In the second quarter of 2025 adjusted EBITDA amounted €124.4 million (15.0% of revenues), higher both numerically and as a percentage of revenues compared to the same period of 2024 (€110.9 million, 14.5% of revenues). Improvement was also recorded in the half, with the adjusted EBITDA coming in at €240.7 million (15.2% of revenues) versus €204.7 million (14.4% of revenues) in the first half of 2024.
In the six months, the Household division posted an adjusted EBITDA of €182.1 million (13.3% of revenues), higher numerically against the same period of 2024 (€172.4 million), and largely stable as a percentage of revenues.
The Professional division reported an adjusted EBITDA of €58.6 million or 26.4% of revenues, decidedly higher than in 2024 (€32.3 million, 22.3% of revenues).
In the first half of 2025, €1.1 million in non-recurring expenses were recognized (versus net expenses of
€3.0 million in the same period of 2024) relating mainly to the costs associated with a few ongoing company reorganizations.
The Group also recognized €7.2 million in costs associated with stock option and phantom stock option plans in the reporting period (versus €2.0 million in the first half of 2024).
Amortization and depreciation amounted to €64.6 million in the half, higher overall than in the first half of 2024 (€56.0 million) which reflects the partial consolidation of La Marzocco in 2024 and the completion of a few investments.
In the first half of 2025 EBIT amounted to €167.9 million or 10.6% of revenues (€143.7 million, 10.1% of revenues in the first half of 2024).
The Group posted €1.6 million in financial income (versus income of €4.4 million in the first half of 2024) attributable to financial management, as well as effective currency management.
Net taxes of €40.1 million (€33.7 million in the first half of 2024) and the €12.8 million in profit paid to the minority shareholders, the Group's portion of net profit came to €116.6 million.
Results by sector of activityAs a result of the Eversys/La Marzocco business combination, the Group's organizational structure and governance were changed due to the identification of two new operating segments which qualify as such under IFRS 8. These are the Household and Professional divisions, each of which generate revenues and costs (including the revenues and costs relating to transactions with other Group entitites) and their operating results are examined periodically by top management. The Group's activities have been divided between the two divisions based on relevancy.
This breakdown is consistent with the analysis and management tools used by the management group for the assessment of the company's performance and for the strategic decisions.
The information by operating sector can be found in the Illustrative Notes.
Review of the statement of financial positionThe reclassified consolidated statement of financial position is presented below:
(€/million) | 30.06.2025 | 30.06.2024 | 31.12.2024 |
- Intangible assets | 1,231.2 | 1,298.5 | 1,323.3 |
- Property, plant and equipment | 525.7 | 547.8 | 560.6 |
- Financial assets | 12.1 | 11.0 | 10.9 |
- Deferred tax assets | 74.0 | 73.7 | 74.2 |
Non-current assets | 1,843.0 | 1,931.0 | 1,969.1 |
- Inventories | 809.9 | 727.1 | 621.9 |
- Trade receivables | 208.6 | 172.7 | 336.1 |
- Trade payables | (810.1) | (761.2) | (873.1) |
- Other payables (net of receivables) | (150.3) | (137.0) | (181.8) |
Net working capital | 58.0 | 1.6 | (96.9) |
Total non-current liabilities and provisions | (240.3) | (229.8) | (251.0) |
Net capital employed | 1,660.7 | 1,702.8 | 1,621.2 |
(Net financial assets) | (345.8) | (305.3) | (643.2) |
Total net equity | 2,006.5 | 2,008.1 | 2,264.4 |
Total net debt and equity | 1,660.7 | 1,702.8 | 1,621.2 |
In the first six months of 2025, the Group made net investments of €42.8 million (versus €60.0 million in the first six months of 2024), of which €24.0 million in plant, property and equipment which refers mainly to improvements made in order to increase capacity at the production facilities.
The net operating working capital amounted to €208.3 million (€138.6 million at 30 June 2024 and €84.9 million at 31 December 2024), or 5.7% of rolling revenues (4.3% at 30 June 2024 and 2.4% at 31 December 2024). Trade receivables, higher due to increased activity, were managed effectively with a reduction in average collection periods. Inventory was higher due to early stocking in the American market in light of the current macroeconomic environment and stockpiling in strong growth markets (including, for example, Greater China). Trade payables were affected by purchasing dynamics.
Net working capital reached a positive €58.0 million at 30 June 2025 (positive for €1.6 million at 30 June 2024; negative for €96.9 million at 31 December 2024).
Details of the net financial position are shown below:
(€/million) | 30.06.2025 | 30.06.2024 | 31.12.2024 |
Cash and cash equivalents | 686.1 | 827.8 | 1,019.7 |
Other financial receivables | 191.6 | 170.1 | 178.7 |
Current financial debt | (187.1) | (289.2) | (186.5) |
Fair value of derivatives | (34.0) | 10.6 | 5.9 |
Net current financial position | 656.7 | 719.4 | 1,017.8 |
Non-current financial receivables and assets | 130.4 | 121.5 | 131.3 |
Non-current financial debt | (441.4) | (535.6) | (505.8) |
Non-current net financial debt | (311.0) | (414.1) | (374.5) |
Total net financial position | 345.8 | 305.3 | 643.2 |
of which: - positions with banks and other financial payables | 475.2 | 408.7 | 746.1 |
- lease liabilities | (95.4) | (114.1) | (110.0) |
- other financial non-bank assets/liabilities (mainly fair value of derivatives) | (34.0) | 10.6 | 7.1 |
The net financial position came to a positive €345.8 million at 30 June 2025 (€305.3 million at 30 June 2024; €643.2 million at 31 December 2024).
Net of a few, specific financial items, comprising mainly the fair value measurement of derivatives, the net financial position with banks came to a positive €475.2 million (€408.7 million at 30 June 2024; €746.1 million at 31 December 2024).
The statement of cash flows is presented on a condensed basis as follows:
(€/million) | 30.06.2025 6 months | 30.06.2024 6 months | 31.12.2024 12 months |
Cash flow by current operations | 241.7 | 186.1 | 542.6 |
Cash flow by changes in working capital | (187.7) | (79.3) | (56.2) |
Cash flow by current operations and changes in NWC | 54.0 | 106.7 | 486.4 |
Cash flow by investment activities | (42.8) | (60.0) | (127.7) |
Cash flow by operating activities | 11.2 | 46.8 | 358.7 |
Acquisitions | - | (326.8) | (326.8) |
Dividends paid | (191.1) | (104.8) | (108.7) |
Treasury shares purchase | (60.6) | - | - |
Stock options exercise | 2.5 | 11.7 | 12.7 |
Cash flow by other changes in net equity | (59.4) | 15.8 | 44.7 |
Cash flow generated (absorbed) by changes in net equity | (308.6) | (77.3) | (51.3) |
Cash flow for the period | (297.5) | (357.3) | (19.4) |
Opening net financial position | 643.2 | 662.6 | 662.6 |
Closing net financial position | 345.8 | 305.3 | 643.2 |
Current operations, thanks to the good results achieved, and the changes in working capital, which reflect seasonality, the impacts tied to strong growth and the increase in inventory due to the dynamics described above, generated cash flow of €54 million in the half (€106.7 million in the first half of 2024).
The cash flow by operating activities, net of investments, was positive for €11.2 million (positive for €46.8 million in the same period of 2024).
Cash flow for the period was negative for €297.5 million in the first half of 2025 and reflects the payment of dividends for €191.1 million and the purchase of treasury shares for €60.6 million (versus negative
€357.3 million in the first half of 2024 which included the impact of the La Marzocco business combination).
Human ResourcesThe staff of the Group at 30 June 2025 is summarized below:
30.06.2025 | 30.06.2024 | |
Blue collars | 6,584 | 6,929 |
White collars | 3,609 | 3,529 |
Managers | 376 | 380 |
Total | 10,569 | 10,838 |
The Group had 10,569 employees at 30 June 2025.
The difference with respect to the same period 2024 is attributable mainly to a decrease in personnel at one of the Chinese productions facilities.
Alternative performance indicatorsIn addition to the information required by IFRS, this document presents other financial measures which provide further analysis of the Group's performance. These indicators must not be treated as alternatives to those required by IFRS.
More in detail, the non-GAAP measures used include:
Net industrial margin and EBITDA: the Group uses these measures as financial targets in internal presentations (business plans) and in external presentations (to analysts and investors), since they are a useful way of measuring operating performance by the Group and its individual divisions besides EBIT. Net industrial margin is calculated as total revenues minus the cost of materials consumed and of production-related services and payroll.
EBITDA is an intermediate measure that derives from EBIT after adding back depreciation, amortization and impairment of property, plant and equipment and intangible assets. EBITDA is also presented adjusted, gross of non-recurring items, which are reported separately on the face of the income statement, and costs pertaining to share-based incentive plans.
Net working capital: this measure is the sum of inventories, trade receivables, current tax assets and other receivables, minus trade payables, tax liabilities and other payables.
Net operating working capital: this measure is the sum of inventories and trade receivables, minus trade payables.
Net capital employed: this measure is the sum of net working capital, intangible assets, property, plant and equipment, equity investments, other non-current receivables, and deferred tax assets, minus deferred tax liabilities, employee severance indemnity and provisions for contingencies and other charges.
Net financial position: this measure represents financial liabilities less cash and cash equivalents and other financial receivables; the position with banks, net of non-banking items, is also reported. The individual line items in the statement of financial position used to determine this measure are analysed later in this report.
The figures contained in this report, including some of the percentages, have been rounded relative to their full euro amount. As a result, some of the totals in the tables may differ from the sum of the individual amounts presented.
Reconciliation of net equity and profit (loss) for the periodBelow is a concise reconciliation between net equity and profit of the parent company, De' Longhi S.p.A., and the figures shown in the consolidated financial statements:
(Amounts in thousands of Euro)
Net equity 30.06.2025 | Profit for First Half 2025 | Net equity 31.12.2024 | Profit for 2024 | |
De' Longhi S.p.A. financial statements | 712,119 | 208,754 | 743,692 | 269,655 |
Share of subsidiaries' equity and results for period attributable to the Group, after deducting carrying value of the investments | 571,066 | (64,720) | 703,451 | 66,337 |
Allocation of goodwill arising on consolidation and related amortization and reversal of goodwill recognized for statutory purposes | 795,073 | (537) | 874,890 | 1,481 |
Elimination of intercompany profits | (72,009) | (14,089) | (57,920) | (12,514) |
Other adjustments | 242 | (4) | 280 | (9) |
Consolidated financial statements | 2,006,491 | 129,404 | 2,264,393 | 324,950 |
Minority | 190,162 | 12,792 | 187,652 | 14,213 |
Consolidated financial statements-Group portion | 1,816,329 | 116,612 | 2,076,741 | 310,737 |
Related party transactions fall within the normal course of business by Group companies. Information on related party transactions is summarized in Appendix 3 to the Explanatory notes.
Other informationPursuant to Art. 3 of Consob Resolution n. 18079 of 20 January 2012, the Board of Directors resolved to exercise the opt-out clause provided under Art. 70, paragraph 8 and Art. 71, paragraph 1-bis of Consob Regulation n. 11971/99 which grants the option to waive the mandatory publication of informational documents relating to significant mergers, spin-offs, capital increases through in-kind transfers, acquisitions and disposals.
With regard to the main risks and uncertainties to which the Group is exposed, the Report on Corporate Governance and Ownership Structure and anything that is not expressly described in this report, reference should be made to the 2024 Annual Report.
Subsequent eventsThere have been no significant events since the end of the reporting period.
OutlookBased on these solid results the management is upgrading the 2025 guidance, even as they continue to closely monitor the persistent geopolitical and tariffs uncertainties. Revenues growth and a solid EBITDA adjusted are expected for the new perimeter.
Treviso, 31 July 2025
For the Board of Directors
President and Chief Executive Officer Fabio de'Longhi
CONSOLIDATED INCOME STATEMENT(€/000) | Notes | of which 1st half 2025 operative non- recurring | 1st half 2024 | of which operative non- recurring | |
Revenues from sales | 1 | 1,557,403 | 1,400,515 | ||
Other revenues | 1 | 26,811 | 23,172 | ||
Total consolidated revenues | 1,584,214 | 1,423,687 | |||
Raw and ancillary materials, consumables and goods | 2 | (813,072) | (735,159) | ||
Change in inventories of finished products and work in progress | 3 | 199,184 | 160,295 | (791) | |
Change in inventories of raw and ancillary materials, consumables and goods | 3 | 17,334 | 8,154 | ||
Materials consumed | (596,554) | (566,710) | (791) | ||
Payroll costs | 4-8 | (263,496) | (1,325) | (231,865) | (572) |
Services and other operating expenses | 5-15 | (479,296) | (412,738) | (1,654) | |
Provisions | 6-8 | (12,395) | 265 | (12,667) | |
Amortization | 7-15 | (64,611) | (55,967) | ||
EBIT | 167,862 | (1,060) | 143,740 | (3,017) | |
Net financial income (expenses) | 9-15 | 1,617 | 4,398 | ||
PROFIT (LOSS) BEFORE TAXES | 169,479 | 148,138 | |||
Taxes | 10 | (40,075) | (33,706) | ||
CONSOLIDATED PROFIT (LOSS) | 129,404 | 114,432 | |||
Profit (loss) pertaining to minority | 30 | 12,792 | 8,268 | ||
CONSOLIDATED PROFIT (LOSS) AFTER TAXES | 116,612 | 106,164 | |||
EARNINGS PER SHARE (in Euro) | 31 | ||||
- basic | € 0.78 | € 0.70 | |||
- diluted | € 0.78 | € 0.70 | |||
Appendix 3 reports the effect of related party transactions on the income statement, as required by CONSOB Resolution 15519 of 27 July 2006.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME(€/000) | 1st half 2025 | 1st half 2024 |
Consolidated profit (loss) | 129,404 | 114,432 |
Other components of the comprehensive income: | ||
Change in fair value of cash flow hedges | (5,726) | 1,680 |
Tax effect on change in fair value of cash flow hedges | 1,048 | (387) |
Differences from translating foreign companies' financial statements into Euro | (137,939) | 17,734 |
Total other comprehensive income will subsequently be reclassified to profit (loss) for the year | (142,617) | 19,027 |
Actuarial valuation funds | 1 | 5 |
Total other comprehensive income will not subsequently be reclassified to profit (loss) for the year | 1 | 5 |
Total components of comprehensive income | (142,616) | 19,032 |
Total comprehensive income | (13,212) | 133,464 |
Total comprehensive income attributable to: |
Group | (20,085) | 125,604 |
Minority interest | 6,873 | 7,860 |
ASSETS (€/000) | Notes | 30.06.2025 | 31.12.2024 |
NON-CURRENT ASSETS | |||
INTANGIBLE ASSETS | 1,231,219 | 1,323,326 | |
- Goodwill | 11 | 637,468 | 694,208 |
- Other intangible assets | 12 | 593,751 | 629,118 |
PROPERTY, PLANT AND EQUIPMENT | 525,666 | 560,606 | |
- Land, property, plant and machinery | 13 | 300,051 | 300,339 |
- Other tangible assets | 14 | 132,216 | 152,312 |
- Right of use assets | 15 | 93,399 | 107,955 |
EQUITY INVESTMENTS AND OTHER FINANCIAL ASSETS | 142,544 | 142,198 | |
- Equity investments | 16 | 6,789 | 5,223 |
- Receivables | 17 | 5,311 | 5,721 |
- Other non-current financial assets | 18 | 130,444 | 131,254 |
DEFERRED TAX ASSETS | 19 | 73,966 | 74,177 |
TOTAL NON-CURRENT ASSETS | 1,973,395 | 2,100,307 | |
CURRENT ASSETS | |||
INVENTORIES | 20 | 809,853 | 621,850 |
TRADE RECEIVABLES | 21 | 208,560 | 336,145 |
CURRENT TAX ASSETS | 22 | 25,753 | 11,341 |
OTHER RECEIVABLES | 23 | 51,493 | 52,659 |
CURRENT FINANCIAL RECEIVABLES AND ASSETS | 24-15 | 251,318 | 194,113 |
CASH AND CASH EQUIVALENTS | 25 | 686,140 | 1,019,711 |
TOTAL CURRENT ASSETS | 2,033,117 | 2,235,819 | |
TOTAL ASSETS | 4,006,512 | 4,336,126 |
Appendix 3 reports the effect of related party transactions on the balance sheet, as required by CONSOB Resolution 15519 of 27 July 2006.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION - NET EQUITY AND LIABILITIESNET EQUITY AND LIABILITIES (€/000) | Notes | 30.06.2025 | 31.12.2024 |
NET EQUITY | |||
GROUP PORTION OF NET EQUITY | 1,816,329 | 2,076,741 | |
- Share Capital | 28 | 226,942 | 226,820 |
- Reserves | 29 | 1,472,775 | 1,539,184 |
- Profit (loss) pertaining to the Group | 116,612 | 310,737 | |
MINORITY INTEREST | 30 | 190,162 | 187,652 |
TOTAL NET EQUITY | 2,006,491 | 2,264,393 | |
NON-CURRENT LIABILITIES | |||
FINANCIAL PAYABLES | 441,396 | 505,771 | |
- Banks loans and borrowings (long-term portion) | 32 | 198,368 | 227,988 |
- Other financial payables (long-term portion) | 33 | 171,956 | 193,581 |
- Lease liabilities (long-term portion) | 15 | 71,072 | 84,202 |
DEFERRED TAX LIABILITIES | 19 | 97,979 | 112,758 |
NON-CURRENT PROVISIONS FOR CONTINGENCIES AND OTHER CHARGES | 142,271 | 138,196 | |
- Employee benefits | 34 | 71,472 | 63,197 |
- Other provisions | 35 | 70,799 | 74,999 |
TOTAL NON-CURRENT LIABILITIES | 681,646 | 756,725 | |
CURRENT LIABILITIES | |||
TRADE PAYABLES | 36 | 810,105 | 873,139 |
FINANCIAL PAYABLES | 280,726 | 196,072 | |
- Banks loans and borrowings (short-term portion) | 32 | 53,854 | 94,246 |
- Other financial payables (short-term portion) | 33 | 202,028 | 75,617 |
- Lease liabilities (short-term portion) | 15 | 24,844 | 26,209 |
CURRENT TAX LIABILITIES | 37 | 77,735 | 75,821 |
OTHER PAYABLES | 38 | 149,809 | 169,976 |
TOTAL CURRENT LIABILITIES | 1,318,375 | 1,315,008 | |
TOTAL NET EQUITY AND LIABILITIES | 4,006,512 | 4,336,126 |
Appendix 3 reports the effect of related party transactions on the balance sheet, as required by CONSOB Resolution 15519 of 27 July 2006.
CONSOLIDATED STATEMENT OF CASH FLOWNet result | Notes | 1st Half 2025 | 1st Half 2024 114,432 |
129,404 | |||
Income taxes for the period | 40,075 | 33,706 | |
Amortization | 64,611 | 55,967 | |
Net change in provisions and other non-cash items | 7,614 | (18,023) | |
Cash flow generated by current operations (A) | 241,704 | 186,082 | |
Change in assets and liabilities for the period: | |||
Trade receivables | 121,315 | 119,635 | |
Inventories | (221,086) | (167,155) | |
Trade payables | (15,141) | 16,301 | |
Other changes in net working capital | (14,089) | (5,888) | |
Payment of income taxes | (58,714) | (42,242) | |
Cash flow generated (absorbed) by movements in working capital (B) | (187,715) | (79,349) | |
Cash flow generated (absorbed) by current operations and movements in working capital (A+B) Investment activities: | 53,989 | 106,733 | |
Investments in intangible assets | (18,645) | (6,670) | |
Other cash flows for intangible assets | - | - | |
Investments in property, plant and equipment | (23,995) | (36,496) | |
Other cash flows for property, plant and equipment | 414 | 593 | |
Net investments in financial assets and in minority interest | (23,766) | (648) | |
Cash flow absorbed by ordinary investment activities (C) | (65,992) | (43,221) | |
Cash flow by operating activities (A+B+C) | (12,003) | 63,512 | |
Acquisitions (D) | - | (302,250) | |
Exercise of stock option | 2,454 | 11,681 | |
Purchase of treasury shares | (60,586) | ||
Dividends paid | (121,623) | (100,365) | |
Dividends paid to minority interests | (2,771) | (3,804) | |
New loans | - | - | |
Payment of interests on loans | (7,221) | (12,278) | |
Repayment of loans and other net changes in sources of finance | (114,056) | (78,909) | |
Cash flows generated (absorbed) by financing (E) | (303,803) | (183,675) | |
Cash flow for the period (A+B+C+D+E) | (315,806) | (422,413) | |
Opening cash and cash equivalents | 25 | 1,019,711 | 1,250,198 |
Cash flow for the period (A+B+C+D+E) | (315,806) | (422,413) | |
Translation difference effect on cash and cash equivalents | (17,765) | 1,923 | |
Closing cash and cash equivalents | 25 | 686,140 | 827,785 |
Appendix 2 reports the statement of cash flows in terms of net financial position.
De' Longhi S.p.A. Interim financial report at 30 June 2025 03 Consolidated financial statement
CONSOLIDATED STATEMENT OF CHANGES IN NET EQUITY(€/000) | SHARE CAPITAL | SHARE PREMIUM RESERVE | LEGAL RESERVE | EXTRAORDINARY RESERVE | TREASURY SHARES RESERVES | FAIR VALUE AND CASH FLOW HEDGE RESERVES | STOCK OPTION RESERVE | CURRENCY TRANSLATION RESERVE | PROFIT (LOSS) CARRIED FORWARD | PROFIT (LOSS) PERTAINING TO GROUP | GROUP PORTION OF NET EQUITY | MINORITY INTEREST | TOTAL NET EQUITY |
Balance at 31 December 2023 | 226,590 | 40,078 | 45,318 | 201,413 | (9,658) | 259 | 5,695 | 40,867 | 1,010,200 | 250,377 | 1,811,139 | - | 1,811,139 |
Allocation of 2023 result as per AGM resolution of 19 April 2024 | |||||||||||||
- distribution of dividends | (64,439) | (36,578) | (101,017) | (101,017) | |||||||||
- allocation to reserves | 250,377 | (250,377) | - | - | |||||||||
Fair value stock option | 1,098 | 1,098 | 1,098 | ||||||||||
Exercise of stock option | 139 | 5,335 | 9,658 | (3,451) | 11,681 | 11,681 | |||||||
Dividend distribution to minority interests | - | (3,804) | (3,804) | ||||||||||
Other changes in minority interests | (23,225) | (23,225) | 178,732 | 155,507 | |||||||||
Movements from transactions with shareholders | 139 | 5,335 | - | (64,439) | 9,658 | - | (2,353) | - | 190,574 | (250,377) | (111,463) | 174,928 | 63,465 |
Profit (loss) after taxes | 106,164 | 106,164 | 8,268 | 114,432 | |||||||||
Other components of comprehensive income | 1,293 | 18,142 | 5 | 19,440 | (408) | 19,032 | |||||||
Comprehensive income (loss) | - | - | - | - | - | 1,293 | - | 18,142 | 5 | 106,164 | 125,604 | 7,860 | 133,464 |
Balance at 30 June 2024 | 226,729 | 45,413 | 45,318 | 136,974 | - | 1,552 | 3,342 | 59,009 | 1,200,779 | 106,164 | 1,825,280 | 182,788 | 2,008,068 |
Balance at 31 December 2024 | 226,820 | 46,800 | 45,318 | 136,974 | - | 4,649 | 7,781 | 97,078 | 1,200,584 | 310,737 | 2,076,741 | 187,652 | 2,264,393 |
Allocation of 2024 result as per AGM resolution of 30 April 2025 | |||||||||||||
- distribution of dividends | (71,093) | (115,622) | (186,715) | (186,715) | |||||||||
- allocation to reserves | 70 | 310,667 | (310,737) | - | - | ||||||||
Fair value stock option | 4,519 | 4,519 | 4,519 | ||||||||||
Exercise of stock option | 122 | 1,160 | 1,935 | (762) | 2,455 | 2,455 | |||||||
Dividend distribution to minority interests | - | (4,363) | (4,363) | ||||||||||
Treasury shares purchase | (60,586) | (60,586) | (60,586) | ||||||||||
Movements from transactions with shareholders | 122 | 1,160 | 70 | (71,093) | (58,651) | - | 3,757 | - | 195,045 | (310,737) | (240,327) | (4,363) | (244,690) |
Profit (loss) after taxes | 116,612 | 116,612 | 12,792 | 129,404 | |||||||||
Other components of comprehensive income | (5,632) | (131,065) | (136,697) | (5,919) | (142,616) | ||||||||
Comprehensive income (loss) | - | - | - | - | - | (5,632) | - | (131,065) | - | 116,612 | (20,085) | 6,873 | (13,212) |
Balance at 30 June 2025 | 226,942 | 47,960 | 45,388 | 65,881 | (58,651) | (983) | 11,538 | (33,987) | 1,395,629 | 116,612 | 1,816,329 | 190,162 | 2,006,491 |
GROUP BUSINESS
This document represents the consolidated financial statements of the De' Longhi Group.
The parent company De' Longhi S.p.A. is a joint-stock company, incorporated in Italy, whose shares are listed on the Italian stock exchange (Euronext Milan) run by Borsa Italiana.
The registered office is located in Treviso (Italy) in via Lodovico Seitz, 47. The Group operates in Europe, America, Asia Pacific and MEIA.
The Group is active in the production and distribution of domestic and professional coffee machines, small appliances for food preparation and cooking, domestic cleaning and ironing, air conditioning and portable heaters.
The companies included in the scope of consolidation are listed in Appendix 1 to the Explanatory notes.
ACCOUNTING STANDARDS
The half-year financial report includes the condensed consolidated financial statements, which have been prepared in accordance with IFRS (International Financial Reporting Standards) and particularly with the recommendations of IAS 34 - Interim Financial Reporting, which requires interim financial statements to be prepared in a condensed format with fewer disclosures than in annual financial statements.
The half-year condensed consolidated financial statements at 30 June 2025 comprise the income statement, the statement of comprehensive income, the statement of financial position, the statement of cash flows and the statement of changes in net equity, all of which have been prepared in a full format that is comparable with the annual consolidated financial statements.
The explanatory notes are presented in a condensed format and, therefore, are limited to the information needed by users to understand the financial statements for the first half of 2025.
These financial statements are presented in thousands of Euro, unless otherwise indicated.
The publication of the half-year condensed consolidated financial statements for the period ended 30 June 2025 was authorized by the Board of Directors on 31 July 2025 that also approved the financial statements.
The half-year condensed consolidated financial statements have used the same consolidation procedures and accounting policies as those described in the annual report, to which the reader should refer.
The consolidated financial figures were prepared using the same accounting policies as those used to prepare the consolidated financial statements at 31 December 2024. The Group did not early adopted any new standards, interpretations or amendments endorsed, but not yet applicable.
A few new standards and amendments to existing standards went into force for the first time as of 1 January 2025; their adoption did not have significant impacts on the present financial statement.
International accounting standards adopted by the Group for the first time
In August 2023 IASB published Amendments to IAS 21 - Lack of exchangeability, which have been adopted by the European Union with Regulation 2862/2024 of 12 November 2024, that contain guidance to specify when a currency is exchangeable and how to determine the exchange rate when it is not. These amendments, effective for annual periods beginning on or after 1 January 2025, did not have any significant impacts on De'Longhi Group's results.
International financial reporting standards and/or interpretations not yet applicable
In May 2024 the IASB published Amendments to IFRS 9 and IFRS 7 - Amendments to the Classification and Measurement of Financial Instruments. The document aims to clarify the criteria for the recognition/derecognition of financial assets and liabilities and provides specific guidelines for the settling of financial liabilities using an electronic payments system. Classification criteria for financial assets linked to ESG targets, non-recourse loans and related financial instruments were also defined. Furthermore, disclosure requirements for equity instruments measured at fair value through other comprehensive and for financial instruments with contingent features were also extended.
In December 2024, the IASB, through the document Contracts Referencing Nature-dependent Electricity (Amendments to IFRS 9 and IFRS 7), further amended IFRS 9 - Financial Instruments and IFRS 7 - Financial Instruments: Disclosures to improve the reporting of the financial effects of contracts for the purchase and delivery of electricity generated from renewable sources (Power Purchase Agreements). Given that the amount of electricity generated under these contracts can vary due to uncontrollable weather-related factors, the current accounting requirements may not adequately represent how such agreements affect the company's performance. In response, the IASB has introduced the option to apply the own-use exception to certain contracts and has simplified the application of hedge accounting through new provisions that allow for the designation of a variable nominal volume of electricity as a hedged item. The amendments to IFRS 9 and IFRS 7 will be applicable for annual periods beginning on or after January 1, 2026.
In April 2024, the IASB issued the new IFRS 18 - Presentation and Disclosure in Financial Statements, which defines the requirements for the presentation of the income statement, the statement of financial position and the statement of changes in net equity, as well as the mandatory disclosures for the explanatory notes. The standard aims to improve the comparability of the income statement by defining its structure through the identification of categories and subtotals, to increase the transparency of the performance indicators, and to establish criteria for the aggregation/disaggregation of the information. Following its endorsement by the European Union, the standard will be applicable for annual periods beginning on or after January 1, 2027.
In July 2024, the IASB published Annual Improvements to IFRS Accounting Standards - Volume 11 as part of its regular improvement process, with the objective of streamlining and clarifying existing standards. The annual improvements make minor amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards, IFRS 7 Financial Instruments: Disclosures, IFRS 9 Financial Instruments, IFRS 10 Consolidated Financial Statements, and IAS 7 Statement of Cash Flows. The amendments, adopted by the European Union under Regulation 1331/2025 of July 9, 2025, will be applicable for annual periods beginning on or after January 1, 2026.
Finally, the IASB published the new accounting standard IFRS 19 Subsidiaries without Public Accountability: Disclosures, which introduces reduced disclosure requirements for the financial statements of eligible subsidiary companies. Following its endorsement by the European Union, the standard will be applicable for annual periods beginning on or after January 1, 2027.
The Group does not intend to opt for early application of the new standards, in the event it is allowed.
Estimates and assumptions
These half-year financial statements, prepared in accordance with IFRS, contain estimates and assumptions made by the Group relating to assets and liabilities, costs, revenues, other comprehensive gains/losses and contingent liabilities at the reporting date. These estimates are based on past experience and assumptions considered to be reasonable and realistic, based on the information available at the time of making the estimate.
The assumptions relating to these estimates are periodically reviewed and the related effects reflected in the income statement in the same period: actual results could therefore differ from these estimates.
For more information about the main assumptions used by the Group see the section "Estimates and Assumptions" found in the notes to the consolidated financial statements at 31 December 2024.
These more complex assessments are typically done only when the annual report is being drafted as all the information that might be needed are available only at that time; for example, the actuarial valuations needed to determine provisions for employee benefits are generally done at the same time as the drafting of the annual report, with the exception of when a plan is being amended or liquidated.
Finally, as regards the economic outlook, the context, marked by a pronounced macroeconomic complexity and by commercial and tariff-related uncertainties caused by US policy, entails reduced visibility and encourages the maintenance of a cautious attitude.
Intangible assets and plant, property and equipment
Based on the most recent information available and the currently foreseeable scenarios, the Group has not identified the emergence of impairment indicators for intangible and tangible assets recognized in the financial statements.
Allowance for doubtful accounts
The economic conditions of customers were investigated in order to verify the possible impact on the recoverability of trade receivables.
The allowance for doubtful accounts reflects the estimate of expected losses on trade receivables recognized in the financial statements and not covered by insurance. Changes in the economic environment could deteriorate the economic conditions of some of the Group's customers, with an impact on the recoverability of trade receivables, for the portion not covered by insurance.
Inventories
Inventories are presented net of provisions for raw materials and finished products considered obsolete or slow moving, taking into account their future expected use and realizable value. With regard specifically to the Ukrainian branch, the stock is stored at a secured warehouse of a logistics provider and the Group has carefully revisited its valuations in light of the current situation.
Derivatives
The Group verified that the hedges of financial instruments, both prospective and retrospective, were still effective.
Provisions for contingencies and other charges
The Group makes provisions for disputes or risks of various kinds, concerning issues and subjects under the jurisdiction of different countries. These provisions have been assessed based on updated information that takes into account the possible effects deriving from the current context.