Technogym total revenues lifted 17 percent higher in the first half to €325,223,000 from €276,255,000, bolstered by a 35 percent increase in B2B sales to €241.4 million and a nearly 53 percent revenue gain in the North American region to €45.3 million on growth in the hospitality & residential and club segments. Additionally, the Italian wellness company said the six-month revenue increases were “confirmation of people’s increased interest in health and exercise.”
H1 adjusted Ebitda expanded 8.0 percent to €51.8 million from €48.0 million on higher sales volume and unit prices that were partially offset by higher raw material and logistics expenses. Adjusted operating income increased 9 percent to €30.3 million from €27.7 million, but the adjusted return on sales declined to 9.3 percent from 10.0 percent year-over-year. Adjusted net profit rose 25 percent in H1 to €25.0 million. On a non-adjusted basis, H1 Ebit was 0.5 percent higher at €7,484,000, and the group reported an operating loss of €607,000. Period end inventories were up 2.3 percent at €111.1 million.
During H1, Technogym introduced Biostrength, a new strength training line that utilizes artificial intelligence to adapt to the needs and goals of each user. Also, the group has unveiled an updated app with new video content under the Technogym Live platform.
All European sales, including the home Italy market, rose 13.1 percent to €180.2 million during H1. The B2B segment recovered, and strong sales growth was generated in the U.K., Germany, France, Benelux, and Spain. Australia, Japan and Hong Kong; wholesale markets such as Thailand and Vietnam paced a 13 percent increase in APAC and helped offset the performance in Covid-restricted China. Growth in the hospitality, residential and club segments fueled the North American sales increase to €45.3 million.
By distribution channel, only the inside sales segment that includes teleselling and e-commerce suffered an H1 sales decline, with revenues down 20.9 percent year-over-year to €33.5 million. Field sales, meanwhile, increased 30 percent to €207.3 million over the six months and wholesale improved 13.4 percent to €77.8 million. Meanwhile, a new Munich boutique helped fuel an 8.4 percent retail segment sales increase to €6.6 million.
Technogym, whose fitness and wellness products are currently available in 85,000 professional centers worldwide, is currently forecasting double-digit revenue growth for H2. The group also thinks the recent Biostrength launch will enable it to improve profitability in 2022.
