Techtronic Industries Delivers Strong 2024 First Half Results
06 Agosto 2024 - 7:35AM
Business Wire
Gross Margin Expanded to 39.9%, Net Profit
Increased to US$550 Million
Global leader in cordless Professional Tools, DIY Tools, and
Outdoor Power Equipment, Techtronic Industries Co. Ltd. (“TTI” or
the “Group”) (stock code: 669, OTCQX: TTNDY, TTNDF) is pleased to
announce the unaudited consolidated results of the Company and its
subsidiaries for the six-month period ended June 30, 2024. TTI grew
sales in the first half of 2024 to US$7.3 billion, up 6.3% in
reported currency and 6.6% in local currency. MILWAUKEE delivered
double-digit sales growth in local currency and RYOBI outperformed
the market.
- TTI delivered strong first half results, growing sales 6.3% to
US$7.3 billion and net profit 15.7% to US$550 million.
- Our Flagship MILWAUKEE business grew sales 11.2% in local
currency, extending our leadership position as the #1 professional
power tool brand worldwide.
- Gross margin improved 67 bps to 39.9% in the first half of
2024.
- We delivered record first half Free Cash Flow of US$508 million
and improved gearing to 9.2%.
- Mr. Steven Philip Richman was appointed to the role of TTI
Chief Executive Officer (CEO) on May 21, 2024.
Financial Performance Highlights for
2024 First Half
2024
2023
US$’
US$’
million
million
Changes
Revenue
7,312
6,879
+6.3%
Gross profit margin
39.9%
39.3%
+67 bps
EBIT
626
560
+11.8%
Profit attributable to Owners of the
Company
550
476
+15.7%
EPS (US cents)
30.12
26.00
+15.8%
Free Cash Flow
508
301
+207 m
Interim dividend per share (approx. US
cents)
13.90
12.23
+13.7%
Gross margin improved 67 bps to 39.9% in the first half of 2024.
We finished the first half of 2024 with US$4,027 million of
inventory, a reduction of US$71 million from year end 2023 and
US$554 million compared to the first half of last year. We
delivered US$626 million of EBIT in the first half, growing 11.8%
over the comparable period in 2023. EBIT Margin as a percentage of
sales was 8.6%, an increase of 42 bps from the first half of 2023.
Net Profit increased 15.7% to US$550 million. Net Interest costs
for the first half decreased 34.0% to US$32 million, reflecting our
outstanding reduction in higher-cost debt and effective utilization
of lower interest rate facilities. Earnings per share also
increased 15.8% to US30.12 cents. Working capital as a percent of
sales improved 409 bps to 18.7% as compared to June 2023. Gearing
improved to 9.2% as we delivered US$508 million of positive Free
Cash Flow in the first half of 2024, an improvement of US$207
million from the first half of 2023. We are well positioned to
continue driving strong Free Cash Flow conversion in the years to
come.
The TTI Power Equipment segment grew sales 7.1% in local
currency to US$6.9 billion. MILWAUKEE business delivered another
period of double-digit growth in the first half, finishing the
period up 11.2% in local currency. Our Consumer group of businesses
delivered solid first half 2024 results. Led by strong performance
in Outdoor, RYOBI delivered mid-single digit sales growth compared
with the first half of last year. Our consumer Floorcare and
Cleaning business delivered profit improvement of US$9.1 million
and revenue of US$428 million which was comparable to the revenue
generated for the first half of last year.
The Directors have resolved to declare an interim dividend of
HK108.00 cents (approximately US13.90 cents) (2023: HK95.00 cents
(approximately US12.23 cents)) per share for the six-month period
ended June 30, 2024. The interim dividend will be paid to
shareholders listed on the register of members of the Company on
September 6, 2024. It is expected that the interim dividend will be
paid on or about September 19, 2024.
Mr. Horst Julius Pudwill, Chairman of TTI, said, “We
delivered outstanding results in the first half of 2024, including
generating strong Free Cash Flow and strengthening our balance
sheet through disciplined working capital management. With the
promotion of Steven Philip Richman to CEO and the deep talent pool
supporting him, we are extremely well positioned to continue
growing the overall market and extending our leadership
position.
Mr. Steven Philip Richman, CEO of TTI, commented, “Our
first half performance demonstrates our focus on extending our
market leadership position within our MILWAUKEE and Consumer group
of businesses, while delivering a strong financial performance. We
remain laser focused on our strategy of investing in demonstrably
better, technologically advanced new products and exceptional
people to drive our growth.”
About TTI
TTI is a world leader in cordless technology spanning Power
Tools, Outdoor Power Equipment, Floorcare and Cleaning Products for
the DIY, consumer, professional, and industrial users in the home,
construction, maintenance, industrial and infrastructure
industries. The Company has a foundation built on four strategic
drivers – Powerful Brands, Innovative Products, Exceptional People
and Operational Excellence - reflecting an expansive long-term
vision to advance cordless technology. The global growth strategy
of the relentless pursuit of product innovation has brought TTI to
the forefront of its industries while maintaining high
environmental, social and corporate governance standards. TTI's
powerful brand portfolio includes MILWAUKEE, RYOBI and AEG power
tools, accessories and hand tools, RYOBI outdoor products, EMPIRE
layout and measuring products, and HOOVER, VAX, DIRT DEVIL and
ORECK floorcare cleaning products and solutions.
Founded in 1985 and listed on The Stock Exchange of Hong Kong
Limited in 1990, TTI is one of the constituent stocks of the Hang
Seng Index, Hang Seng Corporate Sustainability Benchmark Index,
FTSE RAFI™ All-World 3000 Index, FTSE4Good Developed Index, and
MSCI ACWI Index. The Company also trades on the OTCQX Best Market
under the symbols “TTNDY” and “TTNDF”. For more information, please
visit www.ttigroup.com.
All trademarks listed other than AEG, OTCQX, and RYOBI are owned
by the Group. AEG is a registered trademark of AB Electrolux
(publ.), and is used under license. OTCQX is a registered trademark
of OTC Markets Group Inc. RYOBI is a registered trademark of Ryobi
Limited, and is used under license.
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For Investor Relations enquiries:
Main Contact TTI Investor Relations – North America Ross
Gilardi Senior Vice President, Finance & Investor Relations
Email: ross.gilardi@ttihq.com
Asia/Pacific TTI Investor Relations – Asia Jimmy Li
Senior Manager, Investor Relations Email: jimmy.li@tti.com.hk