De Longhi Spa

Good afternoon, this is the Coral School Conference Operator. Welcome and thank you for joining the De'Longhi First Half 2026 Consolidated Results Conference Call. As a reminder, all participants are in listen-only mode. 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 of de' Longhi. Please, go ahead, sir.

Thank you. Good afternoon, ladies and gentlemen, and thank you for joining the de' Longhi Group Conference Call for our first of 2026 results. With me on the call today are Nicola Serafin, Group General Manager, Stefano Bieda, CFO, Sandro Magnino, Group Planning and Control Director and Samuele Chiodetto, Investor Relations Director and M&A Manager. I'm really pleased with the strong set of results we delivered in the first half of 2026, driven by exceptional momentum in the professional division and consistent positive organic growth in the household division. Despite ongoing market and geopolitical uncertainties, we successfully overcame these headwinds delivering solid revenue growth and higher profitability. In light of these achievements, it was a great honor to celebrate our 25th anniversary as a public company. Last week, over the past quarter century, the group has built an extraordinary track record, scaling revenues from under 1 billion euro to an expected record near 4 billion in 2026 and expanding net profits tenfold. These long-standing achievements have been driven by sustained, robust organic growth combined with pivotal high-impact acquisitions. We have continuously adapted our strategy to meet evolving market dynamics and consumer needs, transforming the group into a global powerhouse with a unique portfolio of accounting lifestyle brands and broad international reach. We're truly grateful to the financial community as our ongoing dialogue constantly challenges us to deliver top-tier performance while staying ahead of strategic market trends. Now, back to quarterly results. Starting with the professional division, the integration of Lamar Zocco and Navasys is delivering exceptional results, unlocking remarkable growth opportunities and validating our original rationale. Our product lineup is uniquely positioned to capitalize on the structural shift toward specialty espresso and premium coffee experiences. Driven by the strategic positioning, the division has sustained its remarkable trajectory, delivering four straight quarters of top-line growth above 30% alongside industry-leading margins. Over recent months, Eversys strengthened its customer portfolio compared to half one 2025, driven by ongoing partnerships with the key accounts in the U.S., alongside the new customer wins in Europe and in Asia. At the same time, Lamar Zucker has continued to expand its presence, not only as a benchmark for sturdy, durable professional equipment, but also as an iconic lifestyle brand. These have been underlined by high-profile collaborations such as Capsule Lifestyle Collection with Fresco Ball Cagliocca at Pitti Uomo and the custom KB90 created by Officine Fratelli Biambi inspired by Mexico's football temple Estadio Azteca. Last but not least, I am proud to share that La Marzocco is the first manufacturing company in the espresso machine industry to achieve B Corp certification, joining a global community of businesses committed to supporting people and protecting the planet. Turning to the household division, the quarter marked a return to its historical mid-single-digit growth trajectory, navigating a microeconomic environment defined by ongoing uncertainty for consumers and retailers alike. This organic expansion was sustained by new product launches, expanded commercial reach, and increased media investment. Specifically, the group communication strategy has evolved into a full funnel approach that drives consideration, conversion, and long-term advocacy, powered by a holistic pay-plus-earn-plus-owned approach Media Ecosystem. Through our social officina, we are building a scalable network of influencers to drive a sustained earned media. This acts as a powerful multiplier for our paid campaigns, delivering a higher return on our marketing investment. This strategy drives year-round brand awareness while fostering distinct identity and deep customer engagement. driving top-line growth while significantly enhancing brand equity. This impact received a major vote of confidence at the 2026 Cannes Lyon International Festival of Creativity, where the brand won both the Grand Prix for Industry Craft and the Gold Lion in Outdoor for the Milan Design Week Activation, the world's smallest coffee shop. Now, let me focus on the results. In the second quarter of 2026, the group growth was broad-based across the main geographies, with a significant contribution from the European countries and America's area. In more details, growth accelerated in the second quarter, delivering a 9.4% revenue increase. The household division achieved a high single-digit expansion, driven by a marked improvement of the prior period across the UK and key continental markets, including Germany, France, and Benelux. This performance won the pin by a solid trend in coffee, stabilization in nutrition, and a strong recovery in comfort products boosted by favorable weather conditions. Meanwhile, the professional division maintained its robust growth momentum in line with Q1 levels further supported by new contract wins. Mayor revenue declined 12.2%, heavily impacted by a critical geopolitical and economic backdrop in the Gulf region. The solid performance of the professional division and the key markets, including South Africa, was not sufficient to offset this trend, leaving the healthier performance in negative territory at constant exchange rates. The region delivered strong top-line momentum, expanding 20.8% at constant exchange rates, partially offset by a 4% Forex drag, albeit lower than in the first quarter of the year. The household division contributed to the results with organic expansion at a low teens rate, driven by strong performance of coffee machines and a stabilization in nutrition. Professional Coffee maintained a double-digit growth momentum throughout the reporting period. As a Pacific, revenue grew 4% at constant exchange rates with a robust performance of the professional division across the region and a partial slowdown in the household division, which consolidates the excellent results of the previous year. Looking at divisional performance in detail, the professional division expanded significantly with half one 2026 revenues reaching 303 million up 36% plus 40% at constant exchange rates and quarter two revenues rising 33% plus 35% at constant exchange rates to 164 million. This outperformance was driven by broad-based organic growth across both brands and regions capitalizing on the expressive premiumization trend and prosumer growth. The House of Division accelerating its organic growth in the second quarter compared to the start of the year. First half revenues reached 1,379.8 million euro, up 1.2% year on year, plus 3.1% at constant exchange rates, while quarter two revenues rose 4.5%, plus 5.1% and constant exchange rates to 739 million euro. This marks a return to growth rates in line with historical trends overcoming early year traded stocking and broader market uncertainty. Coffee achieved mid single digit growth driven by solid expansion in automatic and manual machines alongside accelerating demand for coffee accessories. Christian, recorded a low single-digit decline at constant exchange rates due to personal blender headwinds, despite strong performance from brown-branded hand blenders. Homecare grew mid to high single-digit, propelled by browning ironing systems. Comfort, achieving strong double-digit growth, bolstered by high seasonal temperatures across continental Europe. The first half of 2026 delivered further margin expansion across the group, benefiting from volume growth and a favorable product mix driven by the professional division outstanding performance. By division, professional achieved an adjusted EBDA of 96.9 million euro, expanding its margin to 32%, up from 26.4% in half one 2025. Household delivered an adjusted EBDA of €186.8 million, representing 13.5% margin versus 13.3% in half one 2025. Second quarter profitability, adjusted EBDA reached €157.7 million, 17.6% of revenues. representing a 260 basis point increase year on year. Margin expansion was driven by the high margin professional division and accelerating household momentum. Quarter 2 results also reflect a 15 million euro net positive impact from custom duty refunds. Within the household division, price mix had a 12 million net negative impact following a selective repositioning of price lists. in certain geographies aimed at maximizing market support, media and communication investments rose by 15 million euros due to increased activities and campaign timing in the first half. On the positive side, industrial costs held steady through the quarter and volumes returned to positive territory. Net profit attributed to the group rose 34.5% year-on-year to €79.7 million, representing 8.9% of revenues. As of June 30, 2026, the group net financial position was €686.6 million, A significant improvement over the 346 million euro reported in the prior year period. Regarding cash generation, free cash flow before dividends, share buyback and acquisitions was positive at 78.3 million euro in the first half of the year. This result was achieved thanks to the excellent contribution from operating activities which have settled the usual seasonality of net working capital related to inventory rebuilding following fourth quarter sales. On a trailing 12-month basis, cash flow before dividends, share repurchases and acquisitions amounted to €508 million, a remarkable achievement that allows us to maintain a flexible and attractive capital allocation strategy. In summary, our first half performance reinforced our key financial KPIs, delivering 8% organic revenue growth, organic margin expansion, including and excluding duty effects, and exceptional trailing 12-month cash flow. We remain focused on rigorous cost control while preserving our strategic investment in product innovation and Brand Communication, ensuring we continue to fuel our future growth. These results and strategic measures lay a solid foundation for achieving our full-year targets while maintaining the flexible and value-driven capital allocation strategy demonstrated in recent years. Therefore, taking into account both our momentum and the current scenario, microeconomic scenario, We confirm our full year revenue growth expansion of mid single digit and raise our adjusted EBDA guidance to 670, 690 million euro, reflecting the immediate benefit of 15 million euro duty refunds and a strong professional growth while factoring in expected cost pressures. We now welcome your question, thank you.

Thank you. This is the Corusco Conference Operator. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchtone telephone. To remove yourself from the question queue, please press star and 2. We kindly ask to use handsets when asking questions. Anyone who has a question may press star and 1 at this time. The first question is from Nicola Storer, Kepler-Chevreux.

Good afternoon and thanks for taking my few questions. The first one is on your ABDA guidance. So again, how much of the increase, if understood well from your comments, is linked to tariff reimbursements? It's just 15 million or you're expecting something more to come in the second part of the year? Second question again on tariffs. If you can, let's say, tell us how much of the tariff reimbursement is linked to the professional business and so how that 32% margin is influenced by tariff reimbursement. And the third question and last question is about price mix on slide 9 you show negative let's say contribution to a BDA by 16 million if you can maybe elaborate on how much is linked to price and how much is on the other end mix thank you okay thank you Nicolò a BDA

I confirm that we booked 15 million euro in tariff refund in the six months. We don't foresee any increase in tariffs to lead you to the new guidance. So if new tariffs will be refunded, we'll be on top of that. The second, the tariff where about approximately 4 million euro in professional and 11 million in household. We reported in professional 96 plus million euro in ABDA adjusted. This incorporates 4 million of tariffs and other extraordinary items and we have, let's clearing ABDA of these exceptional items. ABDA should be in the range of 91 million euro for the division. Last question is on the negative price mix of 16. Yes, we have highlighted that due to the competitive market In our bridge to a BDA there is a negative price mix of approximately 15-16 million euro.

Maybe a quick follow up again on the professional business. Apparently the earnings going to minorities are pretty high compared to the level of BDA So I was wondering if net result of the professional business in the first semester was impacted by any positive, let's say, item inflating in a way earnings. Thank you.

This is about, you know, minority are approximately 38% and this is how these have been Thank you very much and congratulations on the results.

The next question is from Opetani Goldman Sachs.

Hi, good afternoon, Fabio, Nicola, Stefan, and Sam. Thanks for taking my questions. Maybe the first one is, do you mind just talking to Trent in July so far, what you see in the professional nutrition, and maybe just give indications of how you see good shipping out in Q3, Q4?

Thank you, Opetani. No, July, we confirm the trends of the, yeah. It's very early to give a guidance, but it's pretty much in line with our expectations. To summarize again, we have expectation for household, full year, low to mid single digit growth. and we confirm for professional full year double digit growth with now probably more normalized growth for professional in the second half which can be high single digit, yeah, more than double digit.

Okay, that helps. And do you mind just talking to the margin, sort of above 30% professional was quite strong. How should we sort of see normalized margins in the term? How much of that, I think you sort of answered this in the last question, but how much of that 30% is tariff as opposed to just sort of normalized margins from professional categories?

I mean, obviously, thanks to the operational leverage and some exceptional items, ABDA stood around 33%. Probably 30 is a more correct midterm and normalized ABDA level for the near future.

Okay. And just on use of cash, I suppose you kind of talked about buying out the minorities. You have the buyback going on and a special dividend from last year. So do you mind just maybe guiding on how you see use of cash for the rest of the year as you approach H2?

Yeah, we have tabled this. I mean, capital allocation is one of our priorities. Obviously, operational focus is top priority but in allocation we put as a priority the buyback which is in place and obviously very happy about the performance of the professional decision so this would be one of our most preferred options to allocate capital also we might look at the acquisition in Both the professional space or in household in the priorities would be North America or adjacent categories. But again, yes, we think that being so happy about the performance of household, we will consider the opportunity to increase our in the professional division.

And sorry, lastly, just to follow up on organic growth, how are trends shaping up in nutrition, especially just in Nutribullet in the U.S.?

Nutrition was weaker, probably. Nutrition was weaker in the first half. We see more positive signs and stabilization. And we hope that we can show soon... improvement also in nutrition in the quarter to come.

Great, thanks very much for taking my questions and have a good summer when it comes.

The next question is from Francesco Brilli in Termonte.

Yes, good evening.

Congratulations for the results and thanks for taking my questions. I have a couple of questions. The first one is On the household division, I was wondering if we can see now a more normalized growth close to the one that we saw in the second quarter. So long for me, single digits are also going forward. And if you have some color on the development of this division going forward. and the next one is his own professional more general question delivered another quarter about 30% and even compays is increasingly demanding so I was wondering if Looking forward to the second half or even next year, how do you think will be a normalized growth for this division and if you can comment if you think it will grow together with the market or continue to gain share in this space? And the last one is on competitive environment. She can comment on rising pressures in North America.

Thank you. So the first question on the household, yes, we confirm that we expect growth in the second half.

Low to mid and single digits.

Professionals, we're going to have a tougher comparison in the second half, but we still expect, thanks to the stronger border backlog and order portfolio and initiatives, to expect continued growth also in the second half. As a more Longhi Spa, Fabrizio Micheli, Eliza Woolston Sheffield, Mike Prager Longhi Spa, Fabrizio Micheli, Eliza Woolston Sheffield, Mike Prager Nicola, you want to take the question on price pressure?

About the competitive environment overall, obviously we have a lot of action in place to support the market strength in this moment. We have been along this quarter with a bit of price impact, as you have reported before. I would say, you asked about the US, let's say not really, the US coffee is doing pretty well from pricing point of view. A bit more when it comes to nutrition, that is a more elastic category. but overall we do not see something that will go on deteriorating along the next month. So we have also action in place to improve and eventually offset also with a bit of positive mix this trend. So we see this something that will stabilize going forward.

Okay, thank you. And then the very last one is by me. What do you see as the main risk in the second half preventing to reach the top end of the guidance?

Given the current situation of the geopolitical, if something can become worse than it is today because in the guidance we have definitely incorporated the current scenario, the new tariffs scenario for the US and also we have incorporated a bit of cost pressure that we have in terms of logistics and material trends and so definitely A worsening situation can prevent from achieving this, but if situations are not going worse than they are, we are pretty confident.

Thank you very much.

The next question is from Alessandro Cecchini, Equita.

Hello, everybody. Can you hear me?

Yes, we can. Yes, we can.

Okay, thank you. Thank you about this. My first question is actually on your America's performance that you said about low-teens organic in the household. That was very, very great. So I'm just wondering if you can highlight to us what are the actions that you are taking Okay so the first question is

Coffee machines is the key driver because again in North America we play within household with two product lines which is the espresso coffee machines and the second is Nutribullet blending Nutribullet blending is a bit weaker as we said but coffee is still very strong and the performance is due to the success of our range. Fuli Auto are doing very well, but also we keep being our market share in PAMP and PAMGN despite also the new entrances in the market. But yeah, we're maintaining our shares pretty well and also thanks also to our marketing investments. We came with a bit of innovation that has strengthened our portfolio and so we have a robust coverage in this moment.

of price points and we gain also distribution so we are in new doors with important customers.

Ok, many thanks. My second one is about you have launched recently some new categories for you like pizza, like ice cream that is something that has not been covered so far so just a feeling about the The feedbacks, the results, so just to understand if this could be, I mean, through a strategic positioning to improve your overall portfolio and then to gain space in these areas that are very Italian, but you didn't in the past have a presence in these areas.

I would say that it is a bit early to jump to a conclusion. Tests are positive. There is a lot of interest around the products. Let's say that more than launching categories, we have launched one product in a category. Probably the category needs to be strengthened and we have a pipeline of Thank you very much. to turn this into something that can be a success.

My second question is about a clarification. It seems to me that, answering to my colleague previously, you basically said that this price adjustment that you made seems to me a sort of Temporary or I would say one-off adjustment, it's correct my interpretation or not, if you can elaborate a little bit more?

I would say that more than press adjustments and it is more... Expanded promo windows in this moment. So we didn't have done really price adjustments, but as probably as consumer you are experiencing, the promo windows are becoming larger and larger. And so this price effect is more, Prime Day 2 has been moved from two days to four days. and so this means that supporting this expanded promo windows is coming to a bit of a price effect as we incorporate promo support in the pricing.

Okay and finally my question is I mean in your Forex exposure because I was I mean it's a small impact but was a negative Forex considering that you are at the end short on some Forex so just to have an idea that you expect a neutral impact for the year in terms of Forex at the BDA level so if it's right it is an interpretation.

I would say that exchange rate, it has marginal impact at the BTDA level as we speak and also in our forecast for the year. That has significant impact in particular in Q1 at the top line, but not at the BTDA level. It's not zero, but it's marginal.

Okay, thank you.

The next question is from Luca Baccoccoli, Intesa San Paolo.

Yes. Hello. Good afternoon, everyone. First of all, congratulations for these exceptional results. So moving to my questions. The first one is on the nutrition business. You said that there's a sort of normalization in this category. And should we think... about an inflection point from an operational point of view or should we see a flat issue, a slightly negative trend also in the coming quarters? And then related to this category, the catwood kitchen machine, if you can elaborate a little bit more on the trend in these last two quarters. and on the free cash flow generation the rolling 12 months free cash flow generation before dividends and buyback is slightly above 500 million euros so is there any headwinds or element that we should take into account for the rest of the year that may affect These strong free cash flow generation. I don't know, maybe some weird, let's say, movement on the networking capital. And finally, on the capital allocation, during the last conference call, you mentioned the minority's buyback as top priority in the capital allocation. So I was wondering if there is any news that you can share with us on the process to get to the conclusion of this deal, if any.

Thank you. We already answered the first question about nutrition and we should expect going flattish to improving in the next quarter. Kitchen Machine, we confirmed that we had a positive first half probably stronger the first quarter than the second quarter I have to say that the very high temperatures in Europe have probably shifted some of the purchases from certain traditional kitchen appliances into comfort for a few weeks and really the heat has been so strong but again we feel positive still about the growth opportunity with Kenwood again in the second half with regard to free cash flow we cannot commit to a 500 million cash free cash flow for the year but I think we have a proven track record and we have a strict management of inventories and stock and we feel comfortable in in a cash flow generation in line with our, let's say, average in the past years.

Nicola, do you want to add on something? No, no, I would say that.

On capital allocation, yes, a confirmed priority goes to buying out the minorities, but we have no news.

Okay, thank you.

The next question is from Andrea Bonfa, Banca Acros.

Hello, good afternoon to everybody. I got some, let's say, residual questions. The first of all is a council's clarification if the 50 million duties have impacted sales or they were just a cost rebate. Just a clarification on that. And, let's say, still on the duties topic, will the new, let's say, duty framework now put in place by the, let's say, U.S. administration will help the price category like Nutribullet where they were close to the sale price limit strategy $99, $119. So because for what I understood in the past, the duties have impacted this kind of product. The new positioning where basically putting them out of market, out of market in terms of pricing and then you are forced to take a hit if you want to maintain sales. I hope I've been clear. And then finally, a clarification on the B2C coffee performance in the second quarter. If I understood correctly, the Q2 performance and growth rate were better than the Q1, if you can remind us the number, also taking into account the impact on Forex. Thank you very much.

Okay, so first question on duty. Yes, we booked, we got 15 million euros refund for IEPA. And these have been booked in the cost. So it is an improvement to the margin. Operating cost. In the operating cost. In the operating cost. The second question is about the nudity. The nudity is pretty neutral. I've been substituting duties as we keep having new sort of duties which are in the ball range are around between 10 to 12 percent so we expect no operational relief but at the same side no worsening of conditions as well pretty stable this is more compared with the initial part of this year than more than the second half of last year where duties were a bit different and then the coffee trend yes we had a stronger second quarter January usually is a smaller month for professionals it's a shorter month in general so you see a stronger sales for the professional division in the second quarter but I think that is difficult to give exact guidance on the next quarters. I confirm that growth is expected for the professional division also in the second half in the area of at least the high single digit.

Okay, Fabio, my question was more on the B2C coffee and if I'm still correct.

Sorry, sorry, sorry, B2C. Sorry, I missed it. Nicola, you were talking about the pie.

I would say yes, Andrea, you are right. The second quarter was stronger and it proved, and it is also what supported overall the performance of the household business. The next question is from Hela Zarouk, Odoo BHF. Hello, do you hear me?

Hello, good afternoon. Congratulations for the strong set of results. Thank you for taking my question. Most of the questions have been asked. I have two follow-up. The first one is in the household. You mentioned the slightly negative price mix and higher marketing investments in the quarter. As we move into H2, do you see room for further margin expansion in the division or should we expect this investment to continue waning on profitability in the near term? The second question is on innovation. Over the past few years, innovation has been a key differentiator for de' Longhi. and looking ahead, where do you see strongest innovation opportunities across your portfolio and should we expect a similar pace of product launches in 2027 as in recent years? Thank you.

Okay, thank you. Nicolas, you want to handle both questions? Yes.

I would say that this slightly negative price mix that we have is something that we had across both the quarters and as mentioned before we see this stabilizing along the next month for this larger promo windows that are in the market. We do not see this as something that can We have a robust plan to look for offset the price effect with a positive mix with a robust launch of innovation that is coming across the full time and 2027. A few weeks ago, our sales and marketing conference where we have unveiled an unprecedented pipeline of innovation new product launches. A lot is coming on coffee, on fully auto coffee machine and beyond, on espresso, but as well as in nutrition. We have mentioned before some categories, it's early to say, but in 2027 this category when it comes to food preparation will be strengthened. as well as in more traditional products as it is kitchen machine. We have two kitchen machines that will be launched and also under the Brown brand we have a significant number of products. So overall we have definitely a robust pipeline of products coming.

Very clear.

Thank you very much.

Thank you. The next question is from Isacco Brambilla, Mediobanca.

Hi, good afternoon everybody. Thanks for taking my questions. I have two. The first one is on AMP. If you can disclose the amount spent on AMP in the first half and either million euros or percentage of sales and comment a bit on the outlook for the full year. Apologies if you mentioned in the presentation that you missed it. Second question is on the comfort segment. Just if you can comment on current trading in July. I know it's a few weeks, but just wondering if the strong trend in the second quarter is continuing in July considering the weather we saw in Europe.

Well, no, Nicola, in terms of current trading, July is pretty in line with what we have incorporated in the guidance, and we see this low to mid single digit, that is with the improvement that has been also in Q2, progressing along the next month. About higher conditioning, About air conditioning, I would say that Europe is stuck out and we cannot expect further benefits in July. About A&P, we have invested more or less 15 million more in the first half than last year and we are in the boy part of 200 million expected along the year.

Thank you, Nicola. Thanks very much.

The next question is from Natasha Brilliant, UBS.

Hi, everyone. Thank you very much for taking my questions. I've got a couple on professional. So you talked about winning some new contracts. I just wondered if you could give us some more color on those. Any particular geography? Is it both brands? And are there any more in the pipeline? And then linked to that, back in February in Florence at the deep dive, I think you talked about some revenue synergies and some sales or joint sales between the two brands. Are you seeing any evidence of that? Is that something that's supporting the very strong performance that we've seen in the first half? and then my final question is just to come back on your comments on capital allocation you were very clear in terms of priorities when it comes to M&A and you looking at other assets to buy is there anything more concrete has the pipeline changed or is it just the same comment that you're sort of always on the lookout in case there's something of interest thank you very much okay thank you Natasha well first of all is a general comment I mean the performance of

professional division and both brands are so strong that it cannot be driven by one customer, one geography. It's really strong growth, strong success across the regions, across many customers. La Marzocco is still very fragmented. I mean, they have some more important customers, but really the sales performance is driven by many, many, many customers, so very fragmented. While fully automated usually are sold to chains and it's where maybe we have a stronger impact of new customers, new additional customers, but also for everything. We want substantially a great number of new customers across different regions We highlighted a couple which are more significant and we expect a strong rollout in the next year or couple of years. One especially in Europe, new customer, very relevant and I would like to highlight another one in North America. So these are probably the plus and sustained success with key customers also in China. So there is, I would say, these are probably the three regions where we have more significant new customers for Eversys. With regard to the synergy, we are working on synergies. We started some joint projects, but probably the sales performance is more driven by, let's say, the work that has been done before. The synergies are yet to come, yet to come. Last question, M&A. Yeah, I confirm what I said before. Priority would go to buying out minorities, but as I said, we have nothing new to share with you today.

Perfect. That's very clear. Thanks so much.

The next question is from Fraser Donlon Berenberg.

Hi Fabio and team, it's Fraser here from Berenberg. Congratulations on the good results. I just had two questions. The first was about household coffee. If you could maybe articulate a little bit the trends you saw within the segment in Q2, e.g. Nespresso against Folato against Manuel. And then the second question was just to ask about how you see capital investments in the second half of the year and into 2027, given the quite well-controlled Thank you very much.

Nicola, maybe you want to give some details and colors around the coffee development.

Let's say that the coffee development in Q2 has been definitely improving compared with Q1 and it is what has sustained the household results together with air conditioning. in full transparency and it was pretty good across all the product segments fully auto-pumped and also accessories that are becoming an important add-on to the coffee business and I would say that this is strong, it has been strong in the US in most of the European geographies, West and East Europe, and also in the Asia geography. So I would say with few exceptions, pretty consistent. This is a good baseline looking forward.

On capital investment,

It's a priority, as said, nothing to add today. Again, it's really something we are willing to complete something soon, but obviously at the moment we have no news, otherwise we would have announced already.

Sorry, just to clarify, it wasn't clear. I meant CapEx specifically. How are you thinking about CapEx in the second half of the year?

In this moment, we are facing, we have a pretty strict control in terms of investments, but I would say that it's in line with last year.

Okay, thanks a lot.

The next question is a follow-up from Alessandro Cecchini, Equita.

Hello, thank you for my follow-up. It's very quick on buyback. I would say if you can update us how much is missing to the full amount and given also the strong cash flow probably just wondering if you I mean round up if any opportunities can emerge in the next months so if you can elaborate a little bit more on this thank you we know we are halfway through the buyback just to remind you it was about 60 million so 30 million have already been spent

For the moment, there's no discussion to increase it. But again, we made no secret that we like buyback as a capital allocation option and we will eventually reconsider in the future.

Okay, thank you.

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Mr. de' Longhi, there are no more questions registered at this time. I turn the conference back to you for any closing remarks.

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Hello everyone and thank you for attending the De'Longhi for South 2026 results conference call. Bye bye.

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