- CONSOLIDATED REVENUE: Euro 634 million, +8% on 2017. At constant exchange rates, consolidated revenue growth stands at +10%
- EBITDA: Euro 134 million, +12% on 2017
- NET PROFIT: Euro 93 million, +53% on 2017
- NET FINANCIAL DEBT: Euro 35 million, improving compared to
Euro 41 million in 2017
- PROPOSED DIVIDEND of Euro 0.18 per share, totaling Euro 36 million, doubled compared to 2017
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% 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%, Japan +16%) and North America (+19%).
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”.
CESENA, Italy—March 27, 2019—The Board of Directors of TECHNOGYM (TGYM.MI), a leader in the international fitness, sport and health equipment market and operating in the broader Wellness industry, today examined and approved the consolidated financial statements and the draft financial statements for 2018, prepared in accordance with International Financial Reporting Standards issued by the International Accounting Standards Board.
TECHNOGYM closed 2018 with revenue up compared to the previous year. The growth was particularly material in some strategic geographic areas for the company’s medium term development, like Asia and North America, as well as in Europe, the most important geography for the company. EBITDA grew more than proportionally compared to revenue growth, both at reported and adjusted level. EBITDA margin is higher than 20%.
The net financial debt registers an improvement compared to 2017, in spite of a non-recurring dynamic impacting the Net Working Capital, due to the company’s ERP system substitution, started in 2018. Normalization is taking place already in the first semester of 2019.
Net Profit strongly grew, thanks to product premium positioning, to continuous quality improvement, to cost management and to the Italian “Patent Box” tax benefit.
As regards innovation, in 2018 Technogym launched new products such as SKILLRUN, the innovative treadmill designed to offer both cardio and power workouts, and SKILLBIKE, the revolutionary stationary bike conceived to offer cyclists, triathletes and amateurs a perfect road cycling feeling. Thanks to SKILL LINE, Technogym has defined a new product category intercepting the booming trend of athletic training, in strong growth both in clubs and in the consumer market.
In the area of digital innovation, Technogym consolidates the leadership of the Mywellness Cloud digital platform, the only open ecosystem in the industry able to offer end-users a fully personalized experience both on Technogym equipment and outdoor, thank to dedicated apps. Today, Technogym counts on over 80.000 installed fitness and wellness clubs, out of which 15.000 are connected to its Mywellness Cloud digital platform and over 12 million people connected to this service; by leveraging this infrastructure Technogym will soon introduce new media content.
With reference to marketing and communication activities, the companies continues its commitment in positioning Technogym as a Premium brand in the BtoB sector and a Prestige brand within BtoC. Finally, Technogym consolidated its position as the leading sports training brand at global level and in February, the company was Official Supplier to the Pyeongchang 2018 Winter Olympics in Korea.
Significant events after December 31, 2018
In line with its continuous innovation DNA and with the increasing interest on the consumer segment, the company, in March, has previewed the Technogym Live platform, that will offer consumer their favorite trainers classes and programs, on Technogym’s equipment consoles, via streaming, at home, at the gym, in hotel, at work.
For 2019, the TECHNOGYM Group confirms the development guidelines already implemented in the year just ended. International growth will mainly involve consolidation of market shares in Europe, further growth in North America, following the positive growth trend already recorded in the last 3 years and further growth also in the Asia Pacific region, in which China represents a big potential market.
The commitment to product innovation will continue through specific focus on improving the equipment user experience by means of digital services provided on the MyWellness open platform. In 2019 the company will enrich its connected digital ecosystem made of products and solutions, for both the operators’ market and the end consumers’ market, with the Technogym Live new training contents and programs. In support of the extensive product portfolio, TECHNOGYM will continue to invest in the skills of its own personnel so they can guarantee clients an excellent service in line with the brand’s aspirational features.
In spite of the uncertain macro-economic scenario and an increasingly competitive wellness market, company management believes that in 2019 Technogym can continue to grow; a constant and sustainable growth, both in terms of revenue and profit, supporting lasting creation of value for its shareholders.
Financial Statements of the Parent Company
The Board of Directors also approved the financial statements of the parent company, Technogym S.p.A. The Company recorded revenue of Euro 450.5 million, up +8.6% on the Euro 414.9 million of 2017 and mainly due to volume growth as well as to the sale of products with greater added value. Net Profit stood at Euro 92.6 million, compared to Euro 51.6 million in 2017. The Statement of Financial Position of Technogym S.p.A. shows Equity of Euro 247.8 million, compared to Euro 172.2 million in 2017, and a Net Financial Debt of Euro 55.2 million compared to Euro 94.5 Million in 2017.
Proposed allocation of profit for the year
The Board of Directors resolved upon a proposal to the Shareholders' Meeting to pay dividends for 2018 of Euro 36.2 million, amounting to Euro 0.18 per ordinary share, with a payout ratio of 39% of Net Profit. This remuneration level must be considered as the combination of: (i) 30% ordinary part; (ii) 9% straordinary part. The remaining share of the Net Profit will be accounted to shareholders capital.
The dividend will be paid on May 22, 2019 (coupon date May 20, 2019 and record date May 21, 2019, with coupon #3 pay out).
Media Relations contacts
Technogym Press Office - Enrico Manaresi
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Technogym Investor Relator – Carlo Capelli, Enrico Filippi
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Tancredi Communications – Giovanni Sanfelice di Monteforte
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Founded in 1983, Technogym S.p.A. is a world-leading international supplier of products, services and solutions in the fields of fitness and wellness. With over 2,000 employees and 14 branches in Europe, the United States, Asia, Middle East, Australia and South America, the company exports 90% of its production to over 100 countries. Technogym S.p.A. was the official supplier for the last six Olympic Games: Sydney 2000, Athens 2004, Turin 2006, Beijing 2008, London 2012 and Rio 2016.
Safe Harbor Statement
Certain statements in this press release could constitute forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. The statements in question refer to risks, uncertainties and other factors that could lead to actual results which differ, even substantially, from those forecast. Such risks and uncertainties include, for example, the ability to manage the effects of the current uncertain international economic scenario, ability to acquire new assets and integrate them effectively, ability to forecast future economic conditions and changes in consumer preferences, ability to successfully introduce and market new products, ability to maintain an efficient distribution system, ability to achieve and manage growth, ability to negotiate and maintain favorable license agreements, currency fluctuations, changes in local conditions, ability to protect intellectual property, problems with information systems, risks associated with inventory, credit and insurance risks, changes in tax regulations, and likewise other political, economic, legal and technological factors and other risks and uncertainties already mentioned in our Consob filings. These forward-looking statements were released as at today’s date and we accept no liability for updating.