Technogym reported revenues of €510 million for 2020, representing a decline of 23.8 percent from 2019. The home fitness segment, strongly driven by stay-at-home measures during the Covid-19 pandemic, saw revenues jump by 71 percent to €154 million. The strong performance of the home fitness segment, which accounted for 30 percent of total revenues, mitigated the temporary slowdown and the postponement of orders across the B2B segments, the company said. In Italy, the country in which Technogym is headquartered and has the most consolidated presence on consumer channels, the performance of home fitness even allowed for an increase in the overall turnover.
The adjusted net profit went down by 49 percent to €43.4 million. This drop was mainly due to a decrease in the operating income, which fell by 47.7 percent as compared to 2019. Adjusted Ebitda amounted to €96.9 million, down by 34.5 percent in 2019, mainly due to the significant decrease in turnover in the period, although it was partly mitigated, especially in the first part of the year, by a reduction in operating costs.
In Italy, revenues increased by 1.9 percent, strongly driven by home fitness. In the rest of Europe, which continues to represent the main geographic area for the company in terms of revenues, there was a 25.0 percent decline in sales because of particularly bold revenue contractions in some key countries such as the U.K.
In the Asia-Pacific (APAC) region, revenues dropped by 25.3 percent, but the fourth quarter marked an initial recovery, with revenues declining by only 13.7 percent in the quarter. North America was the area most impacted by the pandemic, with sales down by 34.7 percent. With the pandemic worsening in the last quarter of 2020, several key accounts in the club sector and operators of the hospitality segment across North America postponed some of their investments. Among emerging geographies, the Middle East, India and Africa (MEIA) region registered a 14.1 percent decline, combined with the excellent performance of home fitness in the United Arab Emirates (UAE). Revenues in the Latin American region declined by 43.7 percent.
By distribution channels, the best performance came from those that were most exposed to home fitness. Retail, represented by the company’s ten flagship stores, recorded a 48.8 percent growth in turnover. Inside sales, which includes teleselling and e-commerce, registered a 77.1 percent increase. Both segments experienced an important acceleration during the fourth quarter, including triple-digit growth in Inside sales. Field sales, the channel most impacted by the lockdown, suffered a 33.9 percent contraction. The wholesale channel recorded a 20.8 percent decrease, with a slight improvement in the fourth quarter thanks to better performances in countries that were no longer significantly affected by the pandemic.
For 2021, Technogym expects a sound recovery in the B2B segments, together with ongoing growth in the home fitness segment. The company projects home fitness to reach €300 million in revenues by 2022, nearly double the revenues of the segment in 2020, thanks to the expansion in the product range and new initiatives to better support sales. The company’s overarching goal is to reach €1 billion in group revenues in 2024.