HONG KONG, Aug. 9, 2023 /PRNewswire/ -- 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$649 million from the first half of 2022
- Gross Margin expanded for the 15th consecutive first half to 39.3%, a 22 bps increase
Financial Performance Highlights for 1H 2023 | |||
2023 US$' million | 2022 US$' 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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