- Datamonitor News and Comment -
Statement by Giuseppe De\' Longhi discussing the 2009 financial trend of the company.
A statement by Giuseppe De'Longhi, Chairman at De'Longhi is given below. The statement has been taken from the company's 2009 annual report.
The year 2009 was particularly difficult, with weak demand for both consumer and investment goods; only in the second half of the year there were some signs of improvement in the overall situation.
The De'Longhi Group has had to face this adverse situation and, despite the difficulties, the actions taken in the past and taken forward in these twelve months have allowed it to keep the negative impacts to a minimum.
Revenues have contracted by 8.4%, although there was a partial reversal of this trend in the fourth quarter.
The group has worked on improving its product mix and has taken actions to control and reduce costs and make supply chain management more efficient, resulting in a major improvement in profitability and the financial position.
Corporate reorganization and restructuring measures have been taken with the aim to reducing costs and rationalizing the group's structure.
Investment in communication for product support has been kept at its past level. Communication and research and development have made the product portfolio stronger.
Our leadership is firmly established in the food preparation sector with the Kenwood brand and in the espresso coffee sector with the De'Longhi brand.
Net debt has come down to EUR117.1 million, representing a reduction of EUR129.4 million.
The group believes that market conditions have not yet fully stabilized. However, its actions on product structure and working capital put the group in a position of financial and balance-sheet strength.