Thank you. Good afternoon, ladies and gentlemen, and thank you for joining the De'Longhi Group conference call for our first quarter 2026 results.

With me on the call today there are Nicola Serafin, Group General Manager; Stefano Biella, CFO; and Samuele Chiodetto, Investor Relations Director, M&A Manager. I'm pleased to announce that we have consolidated our recent excellent results with a solid start to the year, driven by exceptional momentum in the Professional division and positive organic growth in the Household segment.

Despite a market environment characterized by volatility and geopolitical uncertainty, we remain fully confident in the group agility and responsiveness, which have allowed us to navigate recent challenges effectively. The resilience is reflected in our consistent track record, marked by significant revenue expansion and a steady improvement in profitability.

Moreover, over the years, we've been able to further strengthen our global leadership in coffee by successfully capitalizing on the structural growth and premiumization of both the home and professional markets, while simultaneously seizing strategic opportunities in key categories, such as Nutrition and Ironing. Starting with the outlook for the Professional division, the strategic combination of La Marzocco and Eversys continue to generate exceptional value, delivering outstanding performance and increasingly reaffirming the rationale behind the deal.

As the market shifts toward premiumization and specialty coffee, our portfolio is perfectly aligned to capture these structural trends. This positioning has enabled the Professional division to maintain its impressive momentum, steadily delivering revenue growth in excess of 40% for three consecutive quarters, all while sustaining superior profitability.

During the quarter, Eversys completed the acquisition of its Dutch distributor, a strategic move designed to elevate service standards and provide an integrated experience for our local partners and customers. This initiative aligns with the evolving European coffee landscape, where Eversys and La Marzocco remain key players and where we aim to accelerate regional growth through an expanded direct presence.

The Household division delivered positive organic growth for the period, with trends improving after the absorption of excess market inventory during the opening weeks of the year. Excluding January, the division would have achieved a solid mid-single-digit growth at constant exchange rates, driven by positive performance across Coffee and Nutrition categories.

Over recent quarters, the new social media hub has become a strategic pillar of consumer engagement, ensuring maximum impact for all communication initiatives and supporting all marketing activities through an integrated paid and earned media ecosystem. It is driving significant engagement across the entire consumer journey.

Our participation in Milan Design Week offered an excellent opportunity execute this strategy, expanding our reach and deepening the connection between the coffee industry and the world of design and lifestyle. The Smallest Coffee Shop at Home, an original collaboration with miniaturist Simon Weisse, transformed five De'Longhi machines into iconic coffee shops from all around the globe, from Paris to Tokyo, the results of over 1,500 hours of meticulous craftsmanship.

This activation captured global attention, turning the miniature coffee pop-up into a viral media moment, with a combined reach of over 20 million people. Now let me focus on the results.

In the first quarter of 2026, the group growth at constant exchange rates was broad-based across all geographic regions, with a significant contribution from the Americas and Asia-Pacific. In more details, Europe recorded a 1.4% increase in revenue during the period.

The Professional division achieved a double-digit growth, while the Household segment was essentially flat. Within the latter, stronger expansion in markets such as Poland, Benelux, and the Iberian Peninsula offset weakness in some areas, such as Germany, which were impacted by the reabsorption of market excess inventory during the period.

The MEIA region—Middle East, India, and Africa—achieved 4.2% growth at constant exchange rates, driven by significant expansion in the Professional division. Conversely, the Household division recorded a decline in revenue, weighted down by the marked unfavorable exchange rate effect and macroeconomic challenges in the Gulf countries.

The Americas region recorded 18.2% growth at constant exchange rates, supported by the robust performance of the Professional division and a mid-single-digit organic growth of the Household segment. Regarding the latter, the excellent performance of the coffee machines more than offset the contraction of the blender market.

Finally, the Asia-Pacific region achieved an 8.7% increase in revenue, despite a significant negative currency impact, plus 17.2% at constant exchange rates. Specifically, the Professional division delivered an excellent performance across nearly the entire region, while the Household segment maintained a growth trend at constant exchange rates, consolidating the strong results of the previous year.

The Professional division demonstrated broad-based growth, with a widespread double-digit momentum across our key geographies and primary product categories, recording €139 million of sales, a 40% increase compared to 2025. The premium positioning of Eversys and La Marzocco, supported by a robust product portfolio, enabled the group to capitalize effectively on the special premiumization trend, meeting the demands of consumers increasingly focused on premium quality.

Reflecting this, La Marzocco prosumer segment continues to drive significant expansion. Increased volumes, combined with premium positioning, allowed the division to protect and strengthen profitability for both brands.

The Household division achieved a turnover of €641 million, representing a slight decline of 2.4% on a reported basis, but an increase of 0.8% at constant exchange rates. Home Coffee recorded low-single-digit growth at constant exchange rates, driven by manual machines and espresso products, alongside significant expansion in coffee accessories.

Nutrition, the low-single-digit contraction at constant exchange rates is mainly attributable to destocking activity recorded in January. Net of this effect, the segment showed a positive trend in the subsequent months.

Conversely, Kenwood brand, kitchen appliances, saw a significant acceleration in performance compared to the same period last year. Other categories, the Comfort segment, portable heating and air conditioning, recorded mid-to-high single-digit growth year-on-year, while Home Care maintained moderate growth at constant exchange rates.

The first quarter of 2026 delivered a further improvement in the group margins, driven by volume growth and a favorable sales mix, underpinned by the excellent performance of the professional segment. In details, in the quarter, adjusted EBITDA amounted to €126 million, or 16.2% of revenues, an improvement of 80 basis points compared to the previous year.

This improvement was mainly supported by strong growth of the Professional division, which carries margin above the group average. As for the Household division, the price-mix contribution was slightly negative due to selective price repositioning and an increase in market support, while investment in media and communication remained stable as a percentage of total group sales.

During the quarter, we experienced a slightly negative impact from additional tariffs in the US market, approximately €4 million, while were not in effect during the previous year. As of March 31, 2026, the group net financial position was €721 million, a significant improvement over the €483 million reported in the prior year period.

Regarding cash generation, free cash flow before dividends, share buyback, and acquisitions was a negative €44 million for the quarter. This was driven by the typical seasonality in net working capital, specifically the restocking of inventory following sales in quarter four.

On a trailing 12-month basis, free cash flow before dividends, share buybacks, and acquisitions reached €464 million, a remarkable achievement that allows us to maintain a flexible and attractive capital allocation strategy. In summary, our first quarter results reinforce our long-term trajectory of growth and margin expansion, overcoming market uncertainty.

While the geographical landscape requires us to remain vigilant regarding potential inflationary pressures on costs and consumer behavior, underlying business trends have remained resilient over the recent months, and we remain focused on rigorous cost management to navigate these external factors. Regarding the professional segment, we are leveraging our strong and unique proposition to expand the prosumer market and tackle the out-of-home area, achieving above-market results.

To drive this performance, we are further strengthening our product portfolio, highlighted by the recent launches of Eversys Plus, which has allowed us to target the convenience store and office coffee service segments, and the introduction of new colors in the La Marzocco Home line, including cream, blue, and brushed steel. We also continue our extensive communication activities and participation in trade shows and lifestyle events, further strengthening engagement with our community and partners.

On the Household front, we are currently benefiting from recent launches, such as Eletta Explore in coffee, the enlarged portfolio of Kenwood food preparation, and Braun's ironing. We are advancing our new product launches designed to align with evolving consumer desires and investing in strategic marketing campaigns to draw global attention to our brands, supported by an integrated social media strategy.

Furthermore, we're driving the group toward a technological frontier by intensifying investment in key strategic projects across various fronts as presented in the business plan. These include operational excellence, where AI-enabled customer service has moved beyond the first two pilot geographies and is now being prepared for a potential extended rollout; talent acquisition, with a new Social Officina in London, scaling up our social media capabilities; and digital transformation, where we completed the implementation of a global Salesforce e-commerce platform, which is now fully operational across markets.

In light of our progressive improvement during the first quarter, confirmed by a favorable start to the second quarter and normalization of exchange rates, we reaffirm our full-year 2026 forecast. We expect revenue growth at a mid-single-digit rate and an adjusted EBITDA in the range of €640 to €660 million.

We now welcome your question. Thank you.

Hello, can you hear me?

Yes, we can, Niccolò.

Hi, good afternoon, and thanks for taking my three questions. The first one is about your guidance.

Last time we spoke, you say that your guidance for 2026 did not include any impact from the war in Iran. Now you're confirming basically the numbers, but are now these including any impact from the geopolitical chaos we are witnessing?

Second question is about margin evolution. I was trying to understand how much of the EBITDA expansion was linked to the professional coffee performance, and in particular, you show in the EBITDA bridge a negative price-mix impact, notwithstanding the plus 40 versus plus one of professional versus household, this probably implies a very negative price-mix on household products, if you can discuss a bit about this.

Very last is about the stocking actions that you have mentioned taking place in January. I was wondering if this were basically affecting both the food preparation products and coffee, or if they were just limited to food preparation products.

Thank you.

Your question, the first one about the guide, yes, we confirm the guidance. In our guidance, we take in account what's happening in the Gulf, but we expect a rather quick solution still.

We think that if the solution will happen in, let's say, I don't want to say next month, but in the next two or three months, we are able to confirm our year-end guidance. Obviously, if the situation get worse, then we have to reconsider.

For the moment, we think that we can confirm guidance, as said. Before moving to the second question, I think that the trends in, let's say, the underlying business have remained resilient after January.

As I say, January was a bit tougher. We spoke about overstocking at trade level, in particular.

I think that the trend is getting better, in particular for the household division, and also April will be positive for the household division. We think that now we're back on track after a weak January, and we are back in track to meet our year-end goals.

With regard to margin, I would say that, yes, the growth in the expansion of margin is thanks to Professional. Margins were a bit weaker on Household.

I would say that almost entirely due to the tariffs that were not in place last year in the first quarter, and maybe on a slight weakness in January, in particular on espresso, which was a bit overstocked, but again, is back to growth in the following months. Just to summarize what maybe I've already touched on in the first two questions, stock probably has almost normalized, now we feel comfortable that sell-in and sell-out will more be aligned in the next months.

Thank you.

Hi, good afternoon, everybody. Two questions on my side.

The first one is on Americas, under geographical standpoint, I would say the bright spot of the reporting. Could you give us a bit more color on the drivers of the strong organic performance between volumes and prices?

Second question is on households coffee. We're not used to see flat-ish trends for this segment.

Could you help us better understand the underlying demand trends in fully auto machines and which are the drivers of the, say, temporary slowdown, whether this is a theme of timing of product launches, comparison basis, or maybe any sign of downtrading by customers you are recording across the market?

Thank you, Isacco, for the question. USA was a strong Professional, very strong Professional, quite strong Coffee for Household, a negative, unfortunately, on Nutrition for NutriBullet, which has been obviously offsetting the positives of the household coffee.

I don't know, Nicola, if you want to add maybe some color around the US market, in particular, maybe with coffee and...

The coffee trend overall also in the US, in the beginning of the year there was a bit of overstock, the trend also in January was also for the US a bit, let's say, below expectation. Overall in the quarter, the household coffee was positive, while the situation in nutrition and the market, in particular in blending, for Capital Brands is still weak.

Obviously, this is a bit putting in a negative trend overall the US for the household, slightly negative, while it's super positive for the professional. Overall, the trend is a bit reversing as we speak, is becoming stronger for coffee and is normalizing also in nutrition the current trading.

We have a more positive outlook. Obviously, we're looking, and a lot can depend on the next tariff policy, because as we speak, this is still an element to consider.

The second question was about household coffee which has not growing for the first time in quarter one. I would say if we exclude January for a moment, February and March were pretty good, with high single-digit growth also for household coffee.

I think that January has been more like a tail to last year, at the end of last year, rather than signaling what is the potential trend for 2026. I think that probably we had a pretty good year and a very strong year-end last year.

Black Friday was strong, indicating a strong also maybe end of December. In the end, end of December sell-out was pretty weak, and resulted in higher inventory that we have now managed in January.

I would say that, yes, visually, yes, there is no growth in coffee. If we dig in, we understand better the underlying trends with destocking and then, let's say, sell-in, I would say I feel more comfortable from what I'm seeing in February and March, and now also being confirmed by the sales results in April.

That's helpful. Many thanks.

Hi, good afternoon, Fabio, and congratulations, especially for the results. Some of my questions actually been answered.

Maybe to further dig in on the professional coffee performance. It seems that you mentioned double-digit growth in Europe, but looking at the 40%, does it entail that the most of the growth was from the US or the rest of the world?

If you can elaborate on that. If you also can comment on the trading environment at this very, say, precise moment from a geographic standpoint.

I presume that the Gulf countries are negative, but if you can elaborate more on the macro region. Thank you very much.

Yeah. Okay.

Professional actually was strong, with the growth in Europe also around 30%, with MEIA above, close to 50%, and the Americas in the area of just below 40%. I would say that the Professional division performance been really super strong across all regions, across all brands, and also strong in traditional bar equipment and home prosumer equipment.

Second question is about the impact of the war, second part of the question. Yes, probably MEIA now we need to consider that will be slower in the next months.

Again, as said, the region is about 6%, but more specifically, the Gulf countries represent only 3% on total sales for the group.

If I may, a follow-up question on the professional. Can you comment on the performance between Eversys and La Marzocco?

Was it more one of the two, or were they homogeneous from this standpoint?

This year, I would say that both perform extremely well, both. They're pretty, pretty aligned.

Maybe I would say maybe Eversys a bit stronger. Maybe you I to we have to also recall that last year, I mean two years ago, it was a weaker year for Eversys, and the first quarter of last year was still was improving, but still below expected results.

This year, probably Eversys had a better performance also because has a easier comparison versus La Marzocco, which has been expanding sales more consistently across the years and the quarters since the, let's say, the business combination.

Okay. Thank you very much.

Hello, everybody, and thank you for taking my questions. The first one, actually, it's on the prosumer business of La Marzocco.

In my idea, it's roughly 30%, maybe I am wrong, but could be a guess, 30% of La Marzocco sales more or less. Going forward, not just this year, but do you have maybe internal plans, which can be the size of this business?

Can double, can triple? Just to understand your internal expectation for this part of the business that is pretty new for La Marzocco, but is extremely supportive.

This is my first question. My second question is instead about M&A.

That you are excluding any kind of consideration for your internal professional business, but looking around, you see other opportunities in the professional business, also given the sizable cash that you have in your balance sheet? My third question is instead about the product launches in household coffee, if you see an acceleration over the coming quarters.

Finally, it's a small part of the business, but over the last two years was very negative, and at least in Italy, it seems sunny, probably if you can elaborate a little bit more on the air conditioning business that was for two years very negative, and so this year probably you have the restocking effect. Thank you.

Okay. Thank you, Alessandro.

First question, prosumer, long-term, I believe that prosumer for La Marzocco should become more relevant, more important, and the largest part of the business. At the moment, as you are correctly referring to, is 30% is more or less 1/3 of the Marzocco business is home, or prosumer.

I was expecting a stronger also growth for this year in in in prosumer machines at La Marzocco, which is happening, which is happening, but but also professional is so strong that probably this year the let's say the the percentage of of let's say the incidence of of prosumer on total La Marzocco sales won't change just because is an exceptional performance also within the the bar equipment. Then in the long run, I expect that the bar equipment should normalize, and progressively, with Marzocco becoming more visible to consumers, the marketing initiatives, the events, the social media campaigns and activities, will support a stronger acceleration of of of Household, La Marzocco, which is already happening, but will be more visible, and will probably the trend let's say the trend will rebalance the the let's say the the weight of home on total La Marzocco sales, and going the direction that we are we're hoping, where home becomes more relevant than professional.

Having said so, M&A, yeah, Professional, there are some areas where we can perform M&A. Our priority probably will go now to to see if there is an opportunity to to buy out the minorities.

I think that this is probably an area where we feel more comfortable with the performance of Professional. We know well the companies, the companies are doing extremely well, probably this is an area where we can starting focusing more.

Obviously, looking into other alternatives in Professional, there are product segments where we are not present at the moment, which are potential for us. The third area where we are looking at is geographic expansion.

Probably at the moment, the US market is very difficult because of the tariffs and all the complexity that has been caused by the tariffs and the pressure in margin, but this might result in opportunities that we want to look very seriously at. I would say three areas: minorities, other acquisition in Professional, and North America again, in in in Household more specifically.

With regard to household coffee and new products, we have a number of new products, and Nicola, maybe you can want to add and talk about what are the innovation for the year.

In terms of

for Italy

and... In terms of products, definitely in coffee we have an unprecedented pipeline of new launches for the year.

We have four new model of fully automatics. One is just came in the market, it was launched in April, that is our premium model, Eletta Explore, and then we have three launches that will happen across the next months.

It will be Magnifica Duo, Rivelia Start, and a second model of the ultra range, and more is coming also in the first half of next year. Definitely, we have a robust pipeline, probably one of the strongest ever, that is backed also from a couple of new launches also in the range of bean-to-cup, more traditional machine.

We have Specialista Duo that will launch across the summer, and we have another compact solution of bean-to-cup that will come by late this year, early next year. About the air conditioning trend, obviously, we need to acknowledge that air conditioning in this moment is more or less 3% of our business, but definitely, we have a favorable outlook with definitely the last two years has been the worst years probably ever for the category, we have expectation for a double-digit growth of the category, but we need also to acknowledge that is on the base of 3% of impact in our total revenue.

Because we have decided that...

It's more focus on Europe.

...we want to limit the risks in air conditioning, we want to maintain and improve, but never have an excess risk on the growth, which may result in negative years or inventory buildup if the market would not absorb the products.

As we speak, obviously, we do not have a sales potential higher than the stock that we have already on hand at this point of time. By the way, the pre-sales of it has been, let's say, good, with a good trend.

As we speak, the Europe is a bit chilled, cool down, this is not definitely favorable. Let's see how it will be June.

Finally, if I may, on Eversys, probably is my perception, but just asking, it seems to me that the growth of the business is also due to an enlargement of the customer base, probably to bigger chains, to a new league for Eversys that probably was not the case last year or two years ago. Just to know if is also this part of the game, to have also an additional client base that is more chains, a larger business,

so... The growth of Eversys is coming from expansion of our Chinese business, in particularly with the high-end stores where equipment with high productivity is required.

New customers in Europe, in both in, let's say, food chains or coffee chains, Blank Street Coffee in London or in Europe or in North America. We are now also expanding to also convenience stores.

We were already present in convenience store with 7-Eleven in the past, but now we're expanding with a very important customer across Europe. Then also the new products, which are Legacy Plus, there's these products are more, let's say, designed for the OCS and these convenience stores, we expect also this product to help keep growing in this segment.

Then, obviously, we are doing very well in America with more chains. I would say that we were sort of new kids in the block.

The company was founded about 12 years ago. It was very small when we acquired the first stake, and it's starting now to be more visible, and therefore we are winning new customers thanks to the successful deployment in key customers, and the great delivery in terms of quality in the cup, and the robustness, and, let's say, also the service capabilities thanks to our connectivity, which are also fundamental in order to keep down the servicing costs and the maintenance cost for the companies.

Okay. Thank you.

Yeah. Good afternoon, everyone.

Just have a couple of question. The first one is on the price-mix going forward, just thinking about this year.

Do you expect the price-mix to remain negative throughout the year, or do you think that there will be an improvement in the price-mix effect? If yes or no, also why, of course, which is as important as the answer.

The second thing, you're talking about acquisition in professional coffee. Are you more looking in the area of the Marzocco camp, or you're more looking in the camp of the fully automatic Eversys to expand?

Which range do you think deserves to be expanded with another brand and another company?

The first question... Standby.

Sorry, first question is price-mix, and Nicola, maybe But my feeling is that maybe we will continue to see promotional initiatives in key moments of the year, but I think that mix will be positive. I expect maybe more pressure in certain times of the year, but I think that we will continue to grow faster with the fully automats, with our coffee machines with good mix, also Braun in certain ironing systems.

Maybe we'd be a bit sharper in certain time of the year in the very promotional times, but in general, I don't see a negative trend on price-mix. It was just, no, Nicola, what was...

We have an outlook with a positive category mix, fully auto and coffee and also kitchen machine, as we speak, has been pretty Braun. We have a category, Braun also with ironing, we have a positive category mix.

Also within the category, the launches that I've mentioned before are all launches that are going in the upper quartile of our range. This is where we're pushing to bring positive mix and also pricing, a bit of pricing ability.

Said that, the competitive landscape and the promotional windows in the market are definitely expanding. When we're speaking of Prime Day is not anymore Prime Day of Amazon, is becoming a retailer and a industry Prime Day, there is a bit of trade-off on this.

We are acting with countermeasures in terms of category mix and products within the category to have a favorable mix to offset this pricing effect that is more specific on part for the same SKUs. Yeah.

On Professional, difficult to be more specific on what are the targets, as also professional coffee is not a huge segment. I would say that maybe is neither nor.

Maybe it's not a fully auto or is equipment which will be more complementary to our current range. Certainly, Professional is a one of key priorities, and I would say also as mentioned before, yeah, we have already an asset which we own at 62%, which is performing very well, and probably this also at the moment could be our first priority.

Yeah. I was more asking outside buying out the minorities, which is obviously the most logic thing to do, you don't have to convince us.

Okay. Congratulations again.

You're always a very good company.

Thank you so much.

Me again. Thanks for taking my follow-up question.

On professional coffee, basically, if I annualize your plus 40% of Q1, you already got to high-single-digit growth for the year. You guided for low teens, if I'm not wrong.

You just need mid-single-digit growth in the remainder of the year to get there, sharp deceleration versus Q1. I understand that the comparable basis is going to become tougher, but don't you see this as a sort of a conservative target at this stage?

What is your backlog suggesting? Thank you.

I think that if we had this call maybe, say, a couple of months ago, was quite difficult to give and confirm maybe an expectation for the guidance we gave, because January was weaker and February was going in the right direction. I would say that is a very complex I don't want to, for the moment, to modify any guidance, not even considering the strong performance of Professional.

We have also to see that last year, the second half of Professional was already very strong and growing at around 30%. I would say, for the moment, let's keep it as it is.

I think we are more encouraged by the current development for both divisions, but it's not time for us to revise the guidance. Even if I understand that the performance has been better than maybe expected, and I acknowledge that, and this is encouraging myself, encouraging the team, we feel more comfortable about achieving the year-end results.

Good evening. Thanks for taking my question.

A lot had been answered, but just have a quick one on advertising and promotion, if you can recall or just provide some more color on the phasing of advertising and promotion expenses throughout the year and across quarters. See that the first one you mentioned it's quite flatish compared to last year.

Just if you can explain the phasing for the next quarters and for the full year. Thank you.

Thank you, Francesco, for the question. Nicola, you want to handle this one?

Yes. As we speak, for the quarter, we have just, let's say, a flat level compared with last year, considering also that the incidence on turnover was higher because of the lower top line.

In particular, we have a strong plan for the second and third quarter that is correlated also with the new product launches that I've mentioned before, and we have also more to come in terms of both social media activation and also media campaign by year-end. Definitely, you can expect, let's say, a more robust plan of investment in the months to come.

Okay. Thank you.

You're welcome.

Yes. Good afternoon, everyone, and thank you for taking my questions.

The first one is on the bridge of EBITDA. We can see that in other costs, we have lower product cost.

Could you please give us more details about this and how should we expect this item, and in general, the cost base to develop during the year? My second question is on current trading, if you can make an update on current business trading over April and start of May, and did you see any slowdown in your main market segments?

Maybe third question on US tariffs, if you can give us the impact on Q1 and your expectation for the whole year? Thank you.

Sorry. Can you rephrase the last question that we maybe are not sure that got right?

Yeah. It's the impact of US tariffs on the profitability in Q1, the amount, and maybe if you can give us your expectations for the full year, the impact of US tariffs on the profitability for the full year.

Thank you.

You want to handle the cost?

In terms of cost, definitely, we had a favorable carryover of the trends that we have already experienced in the second half of last year due to a lot also of industrial efficiencies and material trends, something that we are holding for the first quarter of this year. We are keeping in this moment, but it's very likely to change if the overall general geopolitical situations do not change in the next weeks, if not months.

What do we can expect, the outlook of the year? It can be something that we can have a carryover as it is if the situation will normalize, or we will have an inflationary pressure if the Middle East situation will not normalize.

In terms of current trading, as we have already mentioned, April was more on the direction of recovery. We had a weak January, but the situation was improving across February, March, and then April is a bit normalized on our expectation.

In terms of the impact of the US tariffs, as we have mentioned, we have more or less €4 million of impact in the first quarter. As we speak, the tariffs that are enforced at the global 10%, 10% additional to the old tariffs scheme, and this is something that the information that we have is what is public available, it is there until the end of June.

What will happen after June, we do not have any information, privileged information on this.

Very clear. Thank you very much.

Yes, good afternoon, everyone. Just two questions from my side.

The first one is a clarification on the trading update in April, you were referring to a normalizing trend. I was wondering if the trend in the professional that you saw in the first quarter is still continuing in April and the first few days of May.

The other question is on CapEx, which in the first quarter were quite significantly lower than last year, is there any phasing effect, or should we expect significant decrease throughout the coming quarters? Thank you.

Okay. I would say that, no, to be a bit more clear on April, Household has grown mid-single-digit at constant exchange rates, while Professional is growing as previously, so, again, no change actually in April.

In the mid term, I would say the second half, the comparison for Professional would be with a very high base, because last year, in the second half, Professional grew at 30%, therefore, this current growth has to take in account the tough comparison versus last year. With regard to CapEx, was low, is under control.

Nicola, we want to comment what is expected CapEx for the second half of the year and the remainder of the year?

As we speak, obviously, considering the overall landscape, we are trying to have a wise allocation as we speak, and obviously, this can vary based also on the outlook of the business. I would consider this more a phasing than something structural.

Sorry, Nicola. Just follow-up on this.

Let's assume a short-lived conflict or crisis in Middle East. The CapEx for the full year 2026 should be in line with last year, or above, lower?

Let's say that we are expecting something that will be normalized more on the level of last year, that on average was, let's say, the level of investment that we have been sustaining in the past few years. Already last year was a CapEx-controlled year, and it will be challenging to go below that level.

Therefore, for the next part of the year, we are expecting more or less the same level of last year.

Okay. Great.

Super clear. Thank you.

Hello. Just a follow-up on your ability to manage costs.

I presume that in this moment you are not adopting special measures to contain costs. It's right at this point?

Secondly, if I understood correctly, if, of course, this is a basis that will continue to have this kind of 10% global tariff, etc., seems to me that this €4 million is already a big chunk of your €10 million for the year, you are digesting now the tariff, because last year, as you said, starting from the third quarter you had the tariff, or so, just to have more qualitative color on these two points.

From operating non-product operating costs and labor cost, we have in this moment a strict policy in terms of cost control that is definitely what is providing benefit to offset also and digest part of the impact that we have on the other side from tariffs as we speak. If the current level of tariffs would be confirmed by year-end, this is what we have in somehow incorporated in the current guidance.

Okay. Thank you.

Okay. Thank you so much for attending the De'Longhi first quarter 2026 conference call.