Good afternoon. This is the Chorus Call Conference Operator. Welcome and thank you for joining the De'Longhi Full Year 2025 Consolidated Results. As a reminder, all participants are in listen-only mode, and after the presentation, there will be an opportunity to ask questions. Should anyone need assistance during the conference call, they may signal an operator by pressing star and zero on their telephone. At this time, I would like to turn the conference over to Mr. Fabio de' Longhi, Chief Executive Officer. Please go ahead, sir.
Good afternoon, ladies and gentlemen, and thank you for joining the De'Longhi Group conference call for our full year 2025 results. With me on the call today are Nicola Serafin, Group General Manager; Stefano Biella, CFO; Samuele Chiodetto, Investor Relations Director and M&A Manager. Very pleased with the results delivered in 2025, which strengthen our standing as a global leader in the coffee industry, extending our reach across both home and professional areas, while maintaining a significant presence in the domestic nutrition space. The market backdrop has been challenging over the last 12 months. On one hand, navigating a number of geopolitical events, and on the other, witnessing an evolving competitive scenario.
In this complex context, the group was able to deliver solid revenue growth of 10.4% at fixed exchange rates, consistently supported by both divisions in all quarters of the year while enhancing profitability in our financial position. Over the last two years, the group performance has been firmly aligned with the 2024, 2026 strategic targets outlined during our 2024 Capital Markets Day, as shown on slide five. Revenue growth has been driven by La Marzocco acquisition and by robust organic expansion, with margins consistently maintained within our medium-term target range. Total free cash flow, pre-M&A dividends buyback, reached about EUR 800 million over two years, supporting a disciplined capital allocation strategy by significant shareholder returns, including in two years over EUR 300 million in dividends and EUR 61 million in buybacks while simultaneously finalizing the strategic combination of Eversys and La Marzocco.
Shifting our focus back to the market trends seen in 2025, the business combination of La Marzocco and Eversys has confirmed its strategic value, yielding outstanding results and global recognition. The professional coffee market continues to benefit from structural tailwinds, driven by the rising of global consumption, the proliferation of specialty coffee shops, and accelerated demand for premium quality and variety. Leveraging high brand awareness and a superior product portfolio, the group has successfully capitalized on these tailwinds, delivering remarkable organic growth above 30% over the last 12 months, accompanied by an Adjusted EBITDA expansion exceeding 50%. Specifically, the professional division maintained its strong momentum to the fourth quarter, achieving revenue growth at constant exchange rates of over 40%, thanks to the positive contribution of all sub-categories.
The household division maintained its strong momentum, with quarter four revenue growing 5.2% at constant FX. This performance is fully aligned with our medium-term mid-single-digit growth target and is particularly significant given the challenging comparison against the exceptional 12% growth delivered in 2024. The positive momentum has remained primarily driven by the coffee category, which continues to benefit from resilient structural trends, the increasing penetration of espresso at home, a widening variety of milk-based drinks, and the ongoing premiumization of our product range. To support this growth, we have executed several high-profile global activations, including Milan Design Week, the Formula One movie premiere in New York, the Venice Film Festival, combined with the launch of the third global campaign on coffee, starring Brad Pitt as ambassador.
These initiatives are strategically designed to broaden our audience reach and stimulate engagement throughout the entire consumer journey. This investment will also support our recent product launches, which continue to expand and enrich our portfolio. As you can see in the presentation, to name just a few, the Eletta Ultra coffee machine featuring our silent technology under the Kenwood brand, the new generation of our Cooking Chef, and for Braun, the extension of cooking and ironing ranges. For NutriBullet, Flex Portable Blender. Now let me focus on the results. In 2025, the group growth was well-balanced across all quarters and all geographical regions.
In more details, the European region posted a 9.1% top-line increase, +8% in quarter four, with positive results across all geographies. Iberian Peninsula, the U.K., the Nordics delivered sustained full year growth, further supported by a robust mid-teens increase during the fourth quarter. Within the household segment, momentum was primarily driven by the sustained expansion of the coffee category, further reinforced by the new Nespresso markets, the continuing international rollout of NutriBullet, and the steady progression of Braun ironing systems. MEIA maintained strong positive momentum, growing 11.2% year-on-year, +16% at constant exchange rates. This result was underpinned by a robust fourth quarter, which saw a low teens expansion at constant exchange rates. The America region grew 8.5% at constant exchange rates despite tariff pressures.
Within the household division, exceptional growth in the coffee machines successfully mitigated softer NutriBullet sales, which were impacted by a broader category slowdown and a challenging prior year comparison. Meanwhile, the professional segment continued its double-digit momentum, supported by the steady expansion of both brands. In Asia Pacific, revenue grew by 10.8%, +18.1% at constant exchange rates, driven by an excellent result in China and Oceania. Despite currency volatility, the region maintained a robust trajectory, closing the fourth quarter with mid-teens growth at constant exchange rates. Regarding the divisions, we're very satisfied with the performance of both, as they realized a solid and resilient pace of growth in recent quarters. Concerning the household division, we highlight what follows.
Coffee segment recorded solid growth, high single-digit growth across both the analyzed periods, driven by the strong performance of manual machines and espresso products, as well as low-teens growth in the coffee accessories category. Nutrition segment experienced a mid-single-digit decline over the 12-month period, primarily due to a slowdown in the U.S., marked by shrinking demand in the blended market and unfavorable exchange rate effect, as well as a challenging comparison with 2024, when growth reached the double-digit. In contrast, Kenwood Kitchen machines delivered mid-to-high single-digit growth, marking its second consecutive year of positive momentum. Regarding other categories, Braun brand ironing system delivered double-digit growth for the third year running, validating the group's recent product innovation and communication strategies. Finally, the comfort sector, portable heating and air conditioning, recorded a partial decrease compared to the previous financial year.
The professional division delivered another strong quarter, with revenue growth close to 40%. The premium positioning of Eversys and La Marzocco, combined with their robust brand equity, allowed the division to significantly outpace the market, leading the premiumization trend. Moreover, the prosumer category emerged as the key growth driver, showing strong double-digit momentum compared to the previous year. Profitability remained strong across the board. Household reported an Adjusted EBITDA of EUR 492 million, equal to 14.8% margin, while the professional segment displayed its accretive impact on the group with EUR 133 million in Adjusted EBITDA, equal to 27.3% margin. In detail, in the full year, Adjusted EBITDA was EUR 625 million, representing 16.4% of revenues, an improvement of 40 basis points over last year.
This was supported by a higher contribution from the professional division, while the household division margin remained nearly in line with the prior year, excluding the impact of tariffs. Regarding the household segment, the price mix contribution was nearly flat for the full year. While in currency, the currency effect had an impact of approximately EUR 8 million. Investments in media and communication increased by roughly EUR 40 million in absolute terms, remaining stable as a percentage of turnover. During the year, we faced slightly higher logistic costs and a negative impact stemming from additional tariffs in the U.S. market. Specifically, despite the tariffs headwinds, we limited the net impact to approximately EUR 10 million-EUR 15 million. This was achieved through a proactive mitigation plan focused on strategic inventory build-up, targeted price increases, and supply chain optimization.
As shown on slide four, our diverse and flexible US supply chain position positions us well to navigate the current tariff regime should it remain in place for the full year, 2026. In 2025, the group net financial position was positive at EUR 770 million, an improvement compared to EUR 643 million in December 2024. With regards to the cash generation, the cash flow before dividends, buybacks, and acquisition was positive for EUR 384 million in the 12 months. Capital expenditures for the full year amounted to EUR 101 million, representing a decrease of EUR 27 million compared to 2024. In terms of shareholder returns, the group distributed EUR 196.5 million in dividends and executed a EUR 61 million share buyback program during 2025.
Summary. Fourth quarter results confirmed a positive growth trajectory and margin expansion observed throughout the year, with both divisions play a key role in achieving these targets. The strong operational performance generated robust cash flow, enabling us to deliver attractive capital returns through the extraordinary dividends and buybacks, while further strengthening the balance sheet. This ensures maximum strategic flexibility for future capital allocation. Looking ahead to 2026, we maintain a vigilant stance regarding the global macroeconomic and geopolitical uncertainties. Although we're not seeing any material disruption to the business related to the recent developments for the time being. In particular, during the first quarter, the group performance at constant currency remains positive, in line with a mid-single-digit medium-term growth target.
This is driven by strong momentum in the professional division, while the household segment is foreseen flattish at a constant currency, but impacted by currency headwinds similar in magnitude to those experienced in quarter four. Despite the backdrop, we project a mid-single-digit revenue growth consistent with our medium-term strategic goals and anticipate in Adjusted EBITDA in the range of EUR 640 million-EUR 660 million. Now we welcome your questions. Thank you.
Thank you. This is the Chorus Call conference operator. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. To remove yourself from the question queue, please press star and two. We kindly ask to use the handset when asking questions. Anyone who has a question may press star and one at this time. First question is from Niccolò Storer, Kepler.
Yeah, good afternoon. Thanks for taking my questions. Three, if I may. The first one is about your guidance on 2026. If I take the midpoint, the applied EBITDA margin is down year-on-year or slightly down year-on-year. If you can help us understand what is basically offsetting or more than offsetting the volume effect, and in particular, how much of the new, let's say, new scenario with oil at $100 per barrel is already embedded in these figures. Second question is about dividend. You basically will propose, let's say, a standard payout, notwithstanding a very heavy cash generation in 2025.
I was wondering if this is a sort of signal that something on the M&A side is moving or is getting closer. Third question, very quick about your exposure to Gulf countries. I see that MEIA is 6%. How much of the 6% is related to countries now, let's say, hit by this war? Thank you.
Okay. Niccolò, thank you for your questions. Yeah, I agree. I mean, our guidance on EBITDA would imply some, let's say, slight margin dilution. I would say to highlight the strong performance that we had in 2025. We think that we are probably gonna be impacted by some currency effect, some currency negative impact. We are now more naturally hedged to the dollar, but we still export to many other markets, Japan, Australia. All these markets are at such a magnitude that would eventually translate in some negative short-term currency impact. We still believe that the market might be competitive and being competitive in quarter four. We have reinforced our investment above the line.
We think that we have to be ready for such a competitive environment, and therefore, we are also thinking maybe some incremental investment in A&P. We're seeing that in certain very specific moment of the year, the market is very promotional. In order to continue in our long-term growth plans, we have to also to price somehow a higher price effect to sustain long-term growth. This just to give some color around our let's say early guidance for the year. With regard to the recent conflict, our numbers are not including any impact arising from eventually a continuation in the Middle East on the crisis and a more persistent inflation maybe in oil or energy.
Actually, our budget is pre-conflict. We think that our exposure for the moment to MEIA is 6%. The Gulf area, which is more directly impacted by that because MEIA, I would highlight, we have also North Africa, South Africa, Turkey and the more specific Gulf region is only 3% of total sales. I hope that this answers your questions.
Thank you.
Oh, no. Last one is on capital allocation.
Yes.
Our priority would go to M&A for sure. We're very pleased also with buybacks, which have been accretive. For the moment, we are not considering any extraordinary dividend. We go back to what was, say, the payout ratio that we had before. I highlight that yes, priority would go to M&A this year and also buybacks eventually.
Next question is from Isacco Brambilla, Mediobanca.
Hi, good afternoon, everybody. Thanks for taking my questions. I have three. The first one is on the EBITDA bridge for the final quarter of the year. I see price mix slightly negative, even if you mentioned price increases in the U.S. If you can elaborate a bit more on the drivers of these very limited but negative impact. Second question is a more general one on how do you see the U.S. market reacting in terms of demand to the impact of price increases applied by basically all the players in the past month? Final question is on the professional business that reached an excellent margin of 27%, if I'm not wrong, this year.
La Marzocco and Eversys were already two very well managed companies at the moment of the combination. Just your view, Fabio, on what has been the boost within De'Longhi to even expand the margin so much.
Thank you, Isacco, for your questions. The first one is the bridge on EBITDA for the final quarter of 20 25. Nicola, maybe,
Yeah.
Would you like to handle this?
We have most of the impact of the net impact that we had in terms of tariffs is. It occurred because of seasonality and because also the phasing of the incoming goods from overseas, because all the goods that are coming to U.S. are imported for us, either from Europe or from China. It's happening as we speak. In terms of price increase, as already mentioned previously, the two categories that we are playing in the U.S. has two different dynamics. Price increase. A bit of price increase has been possible to partially offset the tariffs more on coffee. While the nutrition category has been proven to be much more elastic.
This partially answer also to your second question about how the market is reacting to price increase. Not in all categories, indeed, it happened that the price increase has occurred. Nevertheless, the market is still soft, in particular in the nutrition area. It's under challenge in this moment.
Yeah. Nicola
In the U.S. I'm speaking on the U.S.
Yeah, exactly. Okay. If this answers also the U.S. market question, I would move to the third question about professional. Yeah, has been a very strong year with both companies performing very well. I would highlight as main drivers for the success of La Marzocco continued international expansion. La Marzocco is already a global leader within professional and in particular bar coffee equipment. But some of the markets are quite new or at least we have established branches very lately. I'm speaking also key markets like France or Germany. We're just expanding Far East and the presence in Middle East also is quite recent. International expansion is certainly a driver.
Second main driver is the bounce back in the bar market. I mean, our customers are definitely stepping up in terms of new stores opening. We see also a strong development of the bar equipment. Phenomenal success of Mini and now also Micra, and also the early success with our grinder range. I highlight that La Marzocco was not a manufacturer of grinders and enter the market with three items, and Pico was very strong in the last 12 months because the more, let's say, domestic grinder product we have within the range.
For Eversys, normalization of the growth trend in China, I would say, the development of the high productivity, high quality segment, and, I would say also the acquisition of very important customers in the U.K., in Europe and in the United States and China also. Customer expansion.
Yes, very much.
Yeah.
Next question is from Francesco Brilli, Intermonte. Francesco Brilli, your line is open. Francesco Brilli from Intermonte, your line is open. Next question is from Natasha Brilliant, UBS.
Hello. Thank you for taking my questions. I've got three. First of all, just on free cash flow in 2026, obviously a slightly higher EBITDA, but any other changes we should think about versus 2025 on CapEx, working capital, anything like that? Second question is just on the tariff impact in 2026, as far I understand it, because I think the impact was really just in the second half of last year. Do we need to annualize that for the impact on 2026? And then last question, just on M&A, you said it's a priority still, but any thoughts on the pipeline, if anything's changed in the last few months, or any more color you can share on that? Thank you.
Thank you, Natasha, for the question. Well, first question is about the cash flow we expect for 2026. Going back to what happened 2024 and 2025, I think we have continued with a very strong cash generation. I think we also got some tailwinds in the last two years because of the working capital normalization. You know, you might remember that we had a strong build-up of inventory in 2022 and resulted in a release in the following years. We still feel strong about what is one of our pillars in our equity story, I think is the cash generation. You should expect strong cash generation also in 2026, probably to a lower extent. I think inventories can.
We don't feel we should, say, try to further reduce inventories. I think that we feel that the levels we have reached are very low, and we think that in particular in a more competitive market, we would like to have full availability of products to support our growth. Also, it's not impossible that, given some weakness in certain geographic regions, we should potentially use more our credit leverage to support more our long-term strategic partners in the regions to capture again all growth possibilities. We can be a bit less aggressive in, say, generating cash flow through working capital, but we feel strong still about our ability to contain also the investments and continue to generate long-term growth.
Nicola, I don't know if you want to add some color on the investment where the question.
In terms of tariff impact, as we speak for 2026, it's really an evolving scenario. We were factoring in our budget an impact more or less on the scale of last year, something in the ballpark of EUR 10 million net additional impact for 2026. Considering the pricing setup that I mentioned before, more feasible on coffee and that has been implemented, while we're back on the pre-tariff pricing on nutrition. This is what we have factored, but as we know, it's a very evolving scenario.
Investment.
CapEx and investment in 2026, we are planning and we have an outlook that is in the level of 2025.
Okay. A question about M&A. Let me step back for a moment. Again, we're gonna focus on creating value for our shareholders through better allocation of capital. Priority would go to M&A, buybacks. In M&A priority would go always to North America as a market, professional preferred. Also we will consider eventual opportunities to strengthen our position within professional coffee machines.
Awesome. Thank you.
Next question is from Héla Zarrouk of ODDO BHF.
Yes. Good afternoon, everyone, and thank you for taking my questions. I have one on the price mix effect expected on 2026. If you can share with us your expectations in terms of price mix effect expected in 2026. Also, if you can share with us your expectations in terms of labor and logistics costs impact, maybe the evolution of the logistics costs and labor costs for 2026. Thank you.
Nicola, you want to handle this question?
Yeah. Price mix, it has been in 2025 pretty flat, neutral, and we see competitive pressure considering the consumer landscape in 2026. So there could be some slight erosion there. In terms of labor and logistics costs, obviously, logistics costs in particular, not only sea freight, but also road transportation is in a steady growth, and obviously oil cost in this moment is not helping looking forward. This is part of what has been incorporated also in what Fabio mentioned before, a bit of potential dilutive EBITDA for 2026.
Okay. Thank you.
Next question is from Alessandro Cecchini, Equita.
Hello, everybody, and thank you for taking my questions. The first one is actually a follow-up because my line was noisy, so I didn't take your view on the first quarter organic performance. This is my first question. My second question is instead of product launches for 2026, if you expect it to be bolder in the market, in the coffee or the food preparation. This is my second question. My third, we talked about maybe in terms of some headwinds for price mix.
We had some logistics, but I mean, just wondering if you can elaborate a little about maybe some tailwinds if you have in this moment. Making the math also, I don't understand why it's sort of dilutive because in the midpoint is flattish margins. Probably you are saying in the consumer space while in the professional to add because making the math the margins is flattish year-on-year at the group level. Thank you.
The first question, thank you, Alessandro. On first quarter, we have anticipated that the performance in the first quarter is still at constant currency effect is positive and in line with our mid-single-digit medium-term growth targets. We see in particular, I would say, professional stronger than one might expect, and maybe household somehow a bit softer affected by a strong negative FX, which we think will get better from April. If you recall last year, the dollar in January was at around one to one to the euro and then progressively deteriorated. We still have a strong comparison in the first quarter, but then it kind of reached the current levels already in April.
We think that the negative FX, in particular, related to the dollar, will happen in the first three months, then will get better. With maybe still some negative export currencies like Japanese yen or Australian dollar, which might impact, but far less than we might have in the first half.
About new product launches. We have, I would say that across 2025, 2026, we have a really robust launch of a pipeline of new launches in coffee and also in nutrition and cooking ranges. Aromatic that we have launched last year, La Specialista Touch and Dedica Duo. This year we have a new range of product in hot and cold coffee and milk frothing. We have La Specialista Duo and Magnifica Duo. We have Eletta Ultra, that is a new high-end product. We have definitely a robust pipeline of launches in coffee as well as in nutrition. We've mentioned before the new Cooking Chef.
We have all the Go range for Kenwood cooking products in Braun, both air fryers and grills. We have NutriBullet, a new range of products in NutriBullet with also across new categories and expanding the ironing segment.
Yeah. About the last question is about the tailwinds. In general, I don't see many tailwinds this year. I think that the last year in particular, some tailwinds were coming from the raw materials.
Yes.
From savings at our factories in China. I don't see many tailwinds. Actually, I think this year we have to rely on our ability to grow based on the innovation and the strength of our products. I think also the secular growth in many segments where we operate. In general, I think the tailwinds are, I don't see many. Nicola, I don't know if you want to.
No.
If you see some.
We had in terms of product cost, most of it came last year and from the ability of efficiency and some raw materials. Already by the end of the year, copper and aluminum was getting an upward trend even before oil. In general, this is the outlook on 2026. Before the recent crisis, it was already more on flattish. While logistics costs in general have a bit of upward trend since a few years. Nothing particular concerning, but definitely with increasing more than the average market cost increase.
Okay. My last point was, I mean, on guidance. I didn't understand, so the concept of dilutive margins probably is in the consumer space because, in the overall, making the math is flattish margins.
No, actually also for professional, probably, again, yes, we have highlighted a very strong performance of professional in quarter one, which is happening. Also we're gonna have a tougher comparison for professional in the second half. Maybe you're expecting a stronger growth from professional in the second half, and then you might imply more dilution on our household division. In reality, it is not very much this. We're just incorporating some incremental investment in above the line, a slight, maybe negative impact because of promotional initiatives. Ballpark, we don't expect any major dilution within households.
Okay.
I would say more like a year of stabilization. No, the question was so well asked about the tailwinds. For the moment, we don't have many tailwinds. It's only about our ability to continue our growth trajectory. We're sitting on solid structural growth in coffee. We think also we can bring nutrition back to growth, but no tailwinds on cost. Currencies will be slightly negative to be offset. Therefore, we think that this guidance is quite realistic at this time.
Okay. Thank you.
Next question is from Luca Bacoccoli, Intesa Sanpaolo.
Yes. Hello. Good afternoon, everyone. Three from my side. The first one is on NutriBullet. You said that the growth was very strong outside the U.S. market. I was wondering what is the split between, let's say, the core market and the new markets where you are launching and introducing a NutriBullet product. The other one is again on trading update. If I got it right, the household division at same FX is flattish in the first quarter. What are the geography and product categories which are not growing or even going down? Finally, on trade payables, which at the end of last year were decreasing despite the strong top line growth.
I was wondering if this is either related to the FX depreciation or the fact that you are already implementing better terms condition to your commercial partner. Thank you.
First question on NutriBullet. Maybe Nicola wants to handle this one.
As we speak, currently, the split between the U.S. business or the American business is more 55, 45, 50/50 with the international. The growth of the international is offsetting, let's say, a bit of the setback in the U.S. and in the distribution market. In terms of geography?
Yeah. The second question was about last year, quarter four, quarter one results or outlook. I would highlight that we finished the year quite strong. I don't think that we pushed to get to the year-end result that you saw. Was not a push. Was really a strong intake from retailers. I assume that after Christmas sales, probably the stock levels were a bit higher than one year ago. This has resulted in a weaker January. In particular, I would highlight two geographies, which are Germany. We saw a weak German market and then also North America, in particular with for NutriBullet, where we still had a strong comparison.
Give us some, let's say, color around our guidance, or expectations for quarter one. Nicola, you want to add anything on this?
No, I don't. I would say that.
What we are seeing also presently a normalization. We expect that probably the stock levels as we speak are already normalized.
Yeah. In the U.S., I'd say there has been a bit probably of a upfront take. The last orders before the start of the duty is also from the retailer. The comparison with-
Yeah.
Last year, the first quarter in the U.S., it has been particularly strong in terms of comparison.
Yeah. Can you rephrase the last question? Because we are not sure that we capture properly what you wanted to hear from us.
Yeah, sure, Fabio. On the trade payables, which were decreasing year-over-year by approximately EUR 20 million-EUR 30 million in a year when the top line was growing on a reported basis by 10%. This decrease is due to the FX. Just simply a lower amount of trade payables that you are recording, or instead that you are shortening the payable terms in order to, let's say, benefit your sourcing partners.
Next question.
Okay. Looking at.
I'd say the payables last year has been a bit of phasing in terms of timing of purchase. We have built also the upfront stock level that we built in particular for the U.S. has been anticipated a bit the timing of the purchase. There is also an exchange rate factor.
Mm-hmm.
Is a bit of.
Okay. Thank you.
Next question is from Fraser Donlon, Berenberg.
Hi, everyone. Thanks for the presentation. It's Fraser Donlon here. I had three questions. Just going through the slides, you mentioned that you would have this controlled investment to strengthen the organizational structure. I just wondered if you could clarify what that relates to, whether it's maybe the diversification of the supply chain you've been doing, but it'd be good to just hear about any specific projects. The second question was on A&P, because it sounds like it still remains quite a promotional environment, but in the deck, you talk about a lower incidence of A&P to sales. I just wanted to clarify, like, what is your base case almost within the guidance for promotional activity. Then the final question was just about professional.
Could you maybe give an overview of kind of like the backlog you see there or what visibility you have in the rest of the year? Thank you very much.
Fabio. Sorry, hi, Fraser. We didn't get the first question. The line is pretty disturbed. If you can rephrase the first one, please.
Sure. Hopefully, you can hear me now. The first question was just, you mentioned in the slides a controlled OpEx to increase the strength of the organizational structure. I just wondered if there are any particular projects you would point out there. I'm not sure if it's about the diversification of your supply chain in Asia or something else.
Probably, yeah, the OpEx we are referring to maybe is the investment in the new commercial and digital marketing structures, which are, as you know, we have just opened an office in London to strengthen our know-how and our capabilities in marketing.
We are strengthening also, if I can step on this, also our e-commerce platform. As we said, we have done a full re-platforming to boost in terms of direct-to-consumer as an acceleration and growth driver for us. This has, like, bring a significant investment.
On A&P, the question is that yes, it—I think the market is more and more competitive in general. I think that, as the market leader, we need to continue strengthen our market position throughout investment in A&P. But at the same time, we know that the markets, our customer also being very promotional, in particular, in very specific times of the year. You know, there's a Black Friday, there is a Christmas sales, there are post-Christmas sales. So we need also to be ready to do a bit both. So we think that is manageable. It is in. Yeah, it is in within our numbers and within our guidance.
If this answers your second question, I would move on to your third question on the professional. Indeed, we are seeing a still strong quarter, very strong quarter for La Marzocco and Eversys. This is supported by order backlog, which is record high for both companies, indicating that we have ahead of us a positive year for both brands. With La Marzocco, in both business segments, I mean, not just professional and bar equipment, but also for Mini and Micra and the home line.
Thank you very much.
Next question is from Francesco Brilli, Intermonte.
Yes, good evening. Can you hear me now?
Yes, we can.
Yeah. Okay. Apologies, I wasn't able to use my microphone before. I have a couple of questions. Many have been answered already. The first one is just trying to understand. I know it's still very, very early in the year, and visibility is, of course, very limited. Based on this initial assessment of the current situation, do you think the current EBITDA guidance could already embed the potential impact of factors related to the current environment, such as, for example, logistics costs or other higher costs? I mean, could be something manageable, similar to how you successfully managed last year, the tariff situation.
The second one is a more general one on the outperformance of the Asia Pacific, which has consistently continued to perform incredibly well with +18% throughout the year, 16% in fourth quarter. If you can provide us with some additional color on the performance of this region and perspectives. Thank you.
Okay. Francesco, thank you for your questions. No, our guidance is before, let's say, before the conflict, based on assumptions before the conflict. We still think that the conflict will have little impact on the business for the moment. On both, let's say the market development in the region, as well as cost, eventual cost impact, or inflation in energy and cost. We're not taking any adjustment on that. The second question is about the performance, how it was strong. Maybe China last year was pushed or supported by the incentives that Nicola has mentioned already. I don't know, Nicola, you want to take it?
Yeah. Definitely in terms of performance in the Asia Pacific region, most of the growth is coming from the strength of the performance of China of last year. That has a robust double-digit growth. While there are other region that has been, or other countries that have been, let's say, more softer than this. It definitely related to China.
Okay. Do you think it's something that can continue going forward?
Last year there has been this government incentive on internal consumption in China that we have benefited with our product categories and coffee in particular. These are not anymore in place. The comparison will be, let's say, much tougher. We cannot expect this upside also this year in the comparison. Still, we see China potentially a growing country.
Thank you. Very clear.
Next question is from Andrea Bonfà, Banca Akros.
Hello, good afternoon. I hope you can hear me. Most of my questions have been already answered. I got a curiosity, is it possible to remind us how much of your production volume are made in China today out of the total? If you still see some deflation ongoing there, which is what the producer price index of China is suggesting. Thank you very much.
Okay. Andrea, thank you for your question. Nicola, you want to take this?
More or less, we are in balance sourcing. Let's say that is more, let's say 50/50 from China and Southeast Asia. Compared with Europe, then Southeast Asia is more related to the U.S. It's something the space of this 50, this single-digit of this 50/50. In terms of cost index from China, last year there's been a bit of benefit. That is what we mentioned before, that we had a slight benefit in terms of cost of goods that we do not see in this moment.
As we speak, there is a bit of pressure from the overall supplier base for price increases. Key to which we have factored for 2026 is a stable cost from the China sourcing.
Okay. Just to understand. Out of the total, China is 50% of your volume manufactured.
Southeast Asia is 50%. Out of this 50%, something between 5%-10% is Thailand, Indonesia, Cambodia, Vietnam. It has a relocation that it has been made for offsetting the U.S. tariffs. Now the scenario is a bit different, but this has been the relocation done along 2025. That is still in place. It is an alternative and resilience that in terms of supply chain we are keeping alive.
Thank you very much.
As a reminder, if you wish to register for a question, please press star and one on your telephone. For any further questions, please press star and one on your telephone. Gentlemen, there are no more questions registered at this time. We have an additional question from Davide Longo, Indépendance AM .
Hello. On my side, only a question on the share-based plan. We've seen that there has been a bit of impact in 2025. What can we expect for 2026 on this side?
Sorry, we didn't hear you. Can you say it again?
Of course. It was related to the non-recurring expenses that you experienced in 2025. Will we see what will be the number to expect on this non-recurring side in 2026?
Yeah. We think that, yeah, we expect this figure to be more in line with the previous years.
Great. Thank you very much.
Thank you.
Thank you.
Gentlemen, we have no more questions registered at this time.
As there are no more questions, I thank you all for attending the De'Longhi full year 2025 conference call. Thank you so much.
Ladies and gentlemen, thank you for joining. The conference is now over. You may disconnect your telephones.