TECHNOGYM CONTAINS THE COVID IMPACT
CONSOLIDATED REVENUE: Euro 116,8 million (-11,2% Vs first quarter of 2019)
Growth in the home fitness related distribution channels: Inside Sales (+10%) and Retail (+72%)
Nerio Alessandri, Chairman and CEO, commented:
'In the context of the Covid pandemic, Technogym closes the first quarter with a contained decrease in revenues. The result for the quarter was affected by the lockdown in the business to business sector, but benefited from the growth in the home fitness segment, which will also bring a positive contribution to the performance of the rest of the year.
The lockdown, experienced in recent months, has created problems for people's health in terms of a sharp increase in sedentary lifestyle, body weight, anxiety and stress and lead to the worsening of existing pathologies like diabetes and hypertension. Therefore consumers will show a strong demand for exercise and wellness .
As of May, the situation for fitness clubs is improving: in China, fitness centers are already operational and many other countries will follow shortly. People want to resume socialization and fitness clubs are ready to operate in safely: precise health and prevention protocols are in place, the use of equipment guarantees social distancing and software systems allow to manage access and maximum capacity of the different areas.
Also in the fitness industry, the emergency that we have experience in the recent months has accelerated the digital revolution: fitness clubs equipped with our digital Mywellness cloud platform have been able to offer their training experience to customers at home. Our strategy to be 'on the go' wellness provider - fitness, sport and health solutions accessible everywhere and anytime, both at home and at the gym - has been definitively consolidated.
After the pandemic, health has risen within people's and companies priority list and wellness is confirmed to be one of the dominant consumer trends. On these bases Technogym has already activated several cost containment initiatives aimed at defending profitability and is confident of being able to return, as soon as possible, to performance in line with the opportunities in wellness'.
Technogym S.p.A. published this content on 13 May 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 May 2020 13:09:07 UTC