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TTI Delivers Solid 2023 First Half Results

August 09, 2023 10:15 PM AEST | By Businesswire India
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 TTI Delivers Solid 2023 First Half Results
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Business Wire India

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 its results for the six months ended June 30, 2023.

 

The Group delivered solid results for the first half of 2023, outpacing the market in sales performance and profit generation, while reducing inventory and delivering outstanding free cash flow. Overall sales declined 2.2% in reported currency, and 1.0% in local currency, to US$6.9 billion. TTI’s Flagship MILWAUKEE business grew 8.7% in local currency, while the Consumer businesses were down low double-digit, in part driven by inventory reduction initiatives within its network and customers.

 
  • TTI delivered solid results for the first half of 2023, outpacing the market in sales performance and profit generation, while reducing inventory and delivering outstanding free cash flow
  • Our Flagship MILWAUKEE business, which is the #1 global professional power tool brand, outperformed the market with 8.7% growth in local currency
  • Reduced inventory from the first half of 2022 by US$651 million
  • Delivered record first half Free Cash Flow of US$301 million, an improvement of US$649 million from the first half of 2022
  • Gross Margin expanded for the 15th consecutive first half to 39.3%, a 22 bps increase
 

Financial Performance Highlights for 1H 2023

 

 

 

 

 

 

 

 

2023

 

2022

 

 

   

US$’

 

US$’

 

 

   

million

 

million

 

Changes

Revenue

 

6,879

 

7,034

 

(2.2%)

Gross profit margin

 

39.3%

 

39.1%

 

+22 bps

EBIT

 

560

 

633

 

(11.5%)

Profit attributable to Owners of the Company

 

476

 

578

 

(17.7%)

EPS (US cents)

 

26.00

 

31.59

 

(17.7%)

Free Cash Flow

 

301

 

(348)

 

+$649 m

Interim dividend per share (approx. US cents)

 

12.23

 

12.23

 

Globally, TTI outperformed the market in the first half of 2023. North America declined 3.9% in sales in local currency. Europe, led by our world-class management team, grew 10.1% in local currency. Rest of World, featuring Australia and Asia, delivered 5.7% growth in local currency.

 

Gross Margin improved 22 bps from the first half of 2022, due to our greater mix towards the Group’s higher margin MILWAUKEE business and productivity initiatives, supplemented with the continued outperformance of its high margin aftermarket battery business.

 

Mr. Horst Pudwill, Chairman of TTI, said, “We remain committed to our strategy of investing in better technology and advanced new products to drive our growth. I am convinced we are well-positioned to continue outperforming the market in the second half of 2023 and beyond.”

 

Mr. Joseph Galli, CEO of TTI, commented, “At TTI, we continually push ourselves to improve. We outperformed the competition in sales, drove substantial inventory reduction, and generated positive free cash flow, while continuing to invest for the future.”

 

Forward-Looking Statements

 

This announcement contains certain forward-looking statements or uses certain forward-looking terminologies which are based on the current expectations, estimates, projections, beliefs and assumptions of TTI about the businesses and the markets in which the Group operates and reflect TTI’s views as of the date of this announcement. These forward-looking statements are not guarantees of future performance and are subject to market risk, uncertainties and factors beyond the control of TTI. Therefore, actual outcomes and returns may differ materially from the assumptions made and the statements contained in this announcement.

 

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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Section 1.10.32 of "de Finibus Bonorum et Malorum", written by Cicero in 45 BC

"Sed ut perspiciatis unde omnis iste natus error sit voluptatem accusantium do Kalkine que laudantium, totam rem aperiam, eaque ipsa quae ab illo inventore veritatis et quasi architecto beatae vitae dicta sunt explicabo. Nemo enim ipsam voluptatem quia voluptas sit aspernatur aut odit aut fugit, sed quia consequuntur magni dolores eos qui ratione voluptatem sequi nesciunt. Neque porro quisquam est, qui do Kalkine Media quia dolor sit amet, consectetur, adipisci velit, sed quia non numquam eius modi tempora incidunt ut labore et dolore magnam aliquam quaerat voluptatem. Ut enim ad minima veniam, quis nostrum exercitationem ullam corporis suscipit laboriosam, nisi ut aliquid ex ea commodi consequatur? Quis autem vel eum iure reprehenderit qui in ea voluptate velit esse quam nihil molestiae consequatur, vel illum qui do Kalkine eum fugiat quo voluptas nulla pariatur?"

1914 translation by H. Rackham

"But I must explain to you how all this mistaken idea of denouncing pleasure and praising pain was born and I will give you a complete account of the system, and expound the actual teachings of the great explorer of the truth, the master-builder of human happiness. No one rejects, dislikes, or avoids pleasure itself, because it is pleasure, but because those who do not know how to pursue pleasure rationally encounter consequences that are extremely painful. Nor again is there anyone who loves or pursues or desires to obtain pain of itself, because it is pain, but because occasionally circumstances occur in which toil and pain can procure him some great pleasure. To take a trivial example, which of us ever undertakes laborious physical exercise, except to obtain some advantage from it? But who has any right to find fault with a man who chooses to enjoy a pleasure that has no annoying consequences, or one who avoids a pain that produces no resultant pleasure?"

1914 translation by H. Rackham

"But I must explain to you how all this mistaken idea of denouncing pleasure and praising pain was born and I will give you a complete account of the system, and expound the actual teachings of the great explorer of the truth, the master-builder of human happiness. No one rejects, dislikes, or avoids pleasure itself, because it is pleasure, but because those who do not know how to pursue pleasure rationally encounter consequences that are extremely painful. Nor again is there anyone who loves or pursues or desires to obtain pain of itself, because it is pain, but because occasionally circumstances occur in which toil and pain can procure him some great pleasure. To take a trivial example, which of us ever undertakes laborious physical exercise, except to obtain some advantage from it? But who has any right to find fault with a man who chooses to enjoy a pleasure that has no annoying consequences, or one who avoids a pain that produces no resultant pleasure?"

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