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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Tarkett | EU:TKTT | Euronext | Ordinary Share |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.20 | 2.19% | 9.34 | 9.24 | 9.34 | 9.34 | 8.94 | 9.12 | 2,890 | 13:23:02 |
Q3 2023 Revenue:
Organic sales growth of +6.0%
Record revenue in Sports
Good levels of activity in CIS countries and resilience in the Commercial segments in North America
Third quarter 2023 results
Paris, 19 October 2023: The Supervisory Board of Tarkett (Euronext Paris: FR0004188670 TKTT), which met today, reviewed the Group’s consolidated revenue for the third quarter of 2023.
The Group uses alternative performance indicators (not defined under IFRS), described in detail in the Appendix of this document:
Revenue in millions of euros | Q3 2023 | Q3 2022 | Change | Of which organic growth |
EMEA | 209.4 | 220.4 | -5.0% | -3.8% |
North America | 228.4 | 251.4 | -9.2% | -2.6% |
CIS, APAC & Latin America | 165.6 | 191.1 | -13.3% | +10.8% |
Sports | 380.8 | 342.5 | +11.2% | +15.8% |
Group Total | 984.3 | 1,005.4 | -2.1% | +6.0% |
Net revenue of the Group amounted to 984 million euros, down -2.1% compared to the third quarter of 2022. Organic growth was +6.0% (or +5.7% including sales price variations in the CIS region(1) ). The total effect of the selling price increases implemented across all segments is +3.1% on average compared to the third quarter of 2022. Sales prices were generally stable compared to Q2 2023.
The EMEA segment achieved a net revenue of 209 million euros, down -5.0% compared to the third quarter of 2022, including an unfavourable currency effect of -1.2% and negative organic growth of -3.8%. The economic context of high inflation and interest rates is penalising renovation and new construction projects throughout the area. Activity in the Residential segment was significantly lower than in 2022 due to an unfavourable product mix, with vinyl rolls performing better than more expensive categories such as parquet. Activity in the Commercial segments fell only slightly compared to 2022 thanks to the good performance of volumes in the two main categories, vinyl products for the health and education sector and carpets for offices.
The North American segment generated net revenue of 228 million euros, down -9.2% compared to the third quarter of 2022, with a negative currency effect linked to the depreciation of the dollar against the euro (-6.6%) and negative organic growth of -2.6%. Commercial segment volumes (offices, healthcare, education) are up slightly compared to 2022 in a market that is currently better positioned than in Europe. On the other hand, business volumes in the Residential and Hospitality segments are down in a market where demand is still suffering from inflation and the level of interest rates.
Net revenue in the CIS, APAC and Latin America segment amounted to 166 million euros, down -13.3% compared to the third quarter of 2022, with a very unfavourable currency effect mainly resulting from the depreciation of the rouble (-31% compared to Q3 2022). Activity is well positioned with organic growth of +10.8% (excluding sales price effects in CIS countries). It benefited from the improvement in volumes in Russia and Ukraine compared to Q3 2022, which was marked by a significant decline compared with 2021. These countries respectively represent 8% and 0.8% of the Group’s net sales over the quarter. In a complex market, selective price reduction contributed to the good performance of vinyl roll and LVT sales for the residential market. In Asia, activity was down, mainly due to a marked drop in sales in China. To optimise its cost base, the Group closed the commercial carpet production site located in Suzhou (China). Latin America remains slightly down compared to 2022 but volumes improved over the quarter in a more favourable economic environment.
Sports net revenue continued to grow at a sustained pace, amounting to 381 million euros, up +11.2%, of which +15.8% organic growth compared to the third quarter of 2022. The market continues to be very dynamic, particularly for artificial turf and athletics tracks in North America. The segment also benefited from price increases which fully offset inflation in raw material costs.
1) Selling price adjustments in the CIS countries are historically intended to offset currency fluctuations and are therefore excluded from the “organic growth” indicator (see Appendix 1)
Over the first nine months of the financial year, the Group’s organic growth was positive (+4.7%).
In an uncertain geopolitical and macroeconomic environment, Tarkett expects a further slowdown in demand in EMEA and a possible shift in business segment activity in North America.
Nevertheless, the favourable business outlook in Sports should allow to compensate for this slowdown and to achieve a significantly higher Adjusted EBITDA, in value and in margin, compared to 2022.
The Group expects a start to 2024 marked by low business volumes in EMEA, where market indicators continue to decline.
In North America, the Commercial segments have so far been well oriented. However, market indicators reflect sluggish activity, which could lag behind in the context of maintaining high interest rates. Similarly, the residential market shows no signs of recovery.
Conversely, activities in the Sports segment are still benefiting from a buoyant market which should allow the Group to continue to grow in this segment in 2024, albeit at a more moderate pace.
Tarkett will continue to closely monitor energy price developments and possible impacts on the price of its raw materials.
In a context of slowing volumes in the flooring business activity, the Group continues to adapt its production and cost structure. Furthermore, thanks to the rigorous control of working capital requirements, it anticipates an improvement in cash generation and a reduction in its debt.
This press release may contain forward-looking statements. These statements do not constitute forecasts regarding results or any other performance indicator, but rather trends or targets. These statements are by their nature subject to risks and uncertainties as described in the Company’s Registration Document available on its website (https://www.tarkett-group.com/en/category/urd/). They do not reflect the future performance of the Company, which may differ significantly. The Company does not undertake to provide updates to these statements.
Financial calendar
Investor Relations and Individual Shareholders Contact
investors@tarkett.com
Media contactsBrunswick - tarkett@brunswickgroup.com - Tel.: +33 (0) 1 53 96 83 83Hugues Boëton – Tel.: +33 (0) 6 79 99 27 15 – Benoit Grange – Tel.: +33 (0) 6 14 45 09 26
About TarkettWith a 140-year history, Tarkett is a worldwide leader in innovative and durable flooring and sports surface solutions, generating net sales of 3.4 billion euros in 2022. The Group has 12,000 employees and 25 R&D centres, 8 recycling centres and 34 production sites. Tarkett designs and manufactures solutions for hospitals, schools, housing, hotels, offices, shops and sports fields, serving customers in more than 100 countries. To build “The Way to Better Floors”, the Group is committed to the circular economy and sustainable development, in line with its Tarkett Human-Conscious Design® approach. Tarkett is listed on the Euronext regulated market (compartment B, ISIN: FR0004188670, ticker: TKTT). www.tarkett-group.com***
Appendices1/ Definition of alternative performance indicators (not defined under IFRS)
In millions of euros | 2023 Revenue | 2022 Revenue | Change | Of which volume | Of which selling prices | Of which CIS selling prices | Of which exchange rate effect | Of which scope effect | |||||||||||
Group Total Q1 | 698.5 | 684.7 | +2.0% | -7.8% | +6.9% | +0.4% | +2.3% | +0.2% | |||||||||||
Of which organic growth | -0.9% | ||||||||||||||||||
Of which selling price increases | +7.3% | ||||||||||||||||||
Group Total Q2 | 909.8 | 879.3 | +3.5% | +2.4% | +5.2% | -1.2% | -2.9% | +0.0% | |||||||||||
Of which organic growth | +7.5% | ||||||||||||||||||
Of which selling price increases | +4.0% | ||||||||||||||||||
Group Total S1 | 1,608.3 | 1,564.0 | +2.8% | -2.1% | +5.9% | -0.4% | -0.7% | +0.1% | |||||||||||
Of which organic growth | +3.9% | ||||||||||||||||||
Of which selling price increases | +5.5% | ||||||||||||||||||
Group Total Q3 | 984.3 | 1,005.4 | -2.1% | +2.8% | +3.1% | -0.2% | -7.8% | +0.0% | |||||||||||
Of which organic growth | +6.0% | ||||||||||||||||||
Of which selling price increases | +2.9% | ||||||||||||||||||
Group Total 9M | 2,592.6 | 2,569.4 | +0.9% | -0.2% | +4.8% | -0.3% | -3.5% | +0.1% | |||||||||||
Of which organic growth | +4.7% | ||||||||||||||||||
Of which selling price increases | +4.5% | ||||||||||||||||||
Revenue in millions of euros | 9M 2023 | 9M 2022 | Change | Of which organic growth | Organic change incl. CIS price changes (1) |
EMEA | 652.5 | 707.4 | -7.8% | -6.1% | -6.1% |
North America | 686.4 | 702.2 | -2.2% | -0.5% | -0.5% |
CIS, APAC & Latin America | 443.5 | 482.1 | -8.0% | +4.7% | +2.7% |
Sports | 810.1 | 677.7 | +19.5% | +21.3% | +21.3% |
Group Total | 2,592.6 | 2,569.4 | +0.9% | +4.7% | +4.3% |
2/ Bridge in millions of euros 2023
Revenue by segment
Q3 2022 | 1,005.4 |
+/- EMEA | -8.3 |
+/- North America | -6.6 |
+/- CIS, APAC & Latin America | +20.6 |
+/- Sports | +54.2 |
Q3 2023 at constant scope and exchange rates | 1,065.3 |
+/- Scope effect | +0.0 |
+/- Currencies | -37.1 |
+/- “Lag effect” in CIS | -43.9 |
Q3 2023 | 984.3 |
9M 2022 | 2,569.4 |
+/- EMEA | -43.3 |
+/- North America | -3.5 |
+/- CIS, APAC & Latin America | +22.6 |
+/- Sports | +144.4 |
9M 2023 Like-for-Like | 2,318.6 |
+/- Scope effect | +1.7 |
+/- Currencies | -40.3 |
+/- “Lag effect” in CIS | +99.3 |
9M 2023 | 2,592.6 |
***
Attachment
1 Year Tarkett Chart |
1 Month Tarkett Chart |
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