Technogym’s revenues climbed 53 percent to €93 million in 2018. Revenues reached €634 million, up 8 percent on a reported basis and 10 percent at constant exchange rates.
EBITDA reached €134 million, an increase of 12 percent over 2017. Net financial debt was reduced to €35 million from €41 million at the close of 2017.
The company recorded the best sales performances in strategic areas for the medium term growth such as North America (+14.4 percent at constant exchange rates) and APAC (China +26 percent and Japan +16 percent). Moreover, the company grew significantly, outpacing the market growth, in Europe, its most important geography, reporting +15.5 percent Italy and +9.2 percent in the other European countries. The performance was below expectations in MEIA (Middle East, India and Africa) and LATAM regions, which are less relevant in terms of total volumes. MEIA suffered from a negative economic conjuncture in some countries, while the LATAM performance refers to Brazil’s, the most important county in the region, economic downturn.
As of December 31, 2018, EBITDA Adjusted stood at €134.4 million, increasing by €14.5 million (+12.2 percent) on 2017 (€119.9 million). This increase is mainly due to: (i) the increase in profitability driven by to the rise in sales volumes; (ii) the streamlining of industrial activities which had a positive impact on direct production costs. The EBITDA has been adjusted for €3 million of nonrecurring costs related to the substitution of the company’s ERP system which has impacted both production planning and logistics activities; non-recurring expenses in 2017 stood at €162,000. On the whole, the percentage of EBITDA Adjusted to Revenue (EBITDA Adjusted Margin) equals 21.2 percent, up compared to the 20.4 percent. EBITDA Margin registered in 2018. Net operating income amounted to €106.8 million, up by €15.8 million (+17.3 percent) compared to €91.1 million in 2017.
The net profit reached €93 million in 2018, up by €32.4 million (+52.6 percent) compared to €60.9 million reported in 2017. The strong net profit increase benefits from the combination of the improvement in the business profitability along with the positive effects of the “Patent Box” agreement for approx. €15 Million.
Nerio Alessandri, chairman and CEO said, “3 years after our IPO, as promised to our shareholders, Technogym continues to grow in a sustainable and profitable way. In 2018 our net profit was up by over 50 percent and we are proud to propose to the Shareholders Meeting a dividend doubled compared to last year.
Technogym’s 2018 consolidated revenue grew in the most important geographic areas. To be highlighted the solid growth in Europe, our most consolidated market and the double-digit growth performances in Asia (China +26 percent, Japan +16 percent) and North America (+19 percent).
Innovation remains the engine of the Technogym growth. Thanks to our exclusive “Wellness on the go” strategy, we are the only player able to offer consumers their personal training program anytime and anywhere, though our unique digital ecosystem, that includes smart equipment, digital apps, services and contents, today installed in 15 thousand fitness centres in the world and used by 12 million people.
In 2018 we have continued to innovate with the development of engaging training programs, designed to satisfy the end-users different needs and passions: from Cycling, to Running, Bootcamp, Circuit Training and Skillathletic Training Experience, born from our competence in the world of sport performance.
This has led us to create and deliver to industry operators – fitness clubs, corporate, hotels – different Technogym Formats dedicated to specific experiences and made of an ecosystem of products and services, training programs, visual merchandising, to evolve the traditional fitness club model into the new CLUB 4.0 concept: “Different experiences for different passions” in a shop-in-shop perspective.
Thanks to our innovative Technogym Live platform, already previewed in London, we will be able to offer consumer, on Technogym’s equipment consoles, via streaming, their favorite trainers classes and programs at home, at the gym, in hotel, at work.
Year after year we are realizing our vision of being the world leader wellness solution provider, in line with our social mission of helping people living better for the benefit of all stakeholders: Governments, Companies and Citizens. Wellness represents also for Technogym a great development opportunity for a long term sustainable and profitable growth.”
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