Tarkett SA

TKTT

Equity

ISIN FR0004188670 / Valor 1418096

Euronext - Euronext Paris (2024-12-23)

EUR 10.65%

Tarkett SA
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About company

Tarkett SA is a global leader in the design and manufacture of a diverse array of flooring solutions, with a history spanning over 140 years. The company specializes in producing high-quality commercial flooring products, including vinyl, linoleum, carpet, wood, laminate, rubber, turf, and tracks. Tarkett is dedicated to delivering high-performing, durable products that incorporate the latest designs. The company serves a wide range of sectors, providing flooring solutions for hospitals, schools, residential buildings, hotels, offices, retail spaces, and sports fields. Tarkett emphasizes innovation and sustainability in its product development, aiming to meet the evolving needs of its customers while minimizing its environmental impact. The company's approach to business is centered around the Tarkett Human-Conscious Design® philosophy, which prioritizes the wellbeing of individuals and communities, and it actively engages in efforts to promote a circular economy. Through its operations, Tarkett seeks to contribute to the advancement of sustainable development, aligning its strategies with several of the United Nations' 2030 Sustainable Development Goals.

Summarized from source with an LLMView SourceSector: Industrials

Revenue Decline

Tarkett SA reported a revenue of €1,558.7 million for the first half of 2024, marking a decline of 3.1% compared to the same period in 2023. This decrease reflects an organic decline of 2.2%, with sales prices remaining stable over the financial year. The decline was particularly noted in the residential end-user segment, while the Sports division maintained stable activity levels.

EBITDA Growth

Despite the revenue decline, Tarkett SA achieved an adjusted EBITDA of €148.2 million in H1 2024, representing 9.5% of sales. This is a significant increase from the €126.1 million, or 7.8% of sales, reported in H1 2023. The improvement was driven by a reduction in raw material costs and good industrial performance, which helped offset lower volumes and wage inflation.

EBIT and Net Profit

Tarkett SA's EBIT for the first half of 2024 was €59.9 million, up from €48.5 million in the same period of 2023. The net profit attributable to shareholders was €18.0 million, a substantial increase from the €2.8 million reported in H1 2023. This resulted in a fully diluted earnings per share of €0.27, compared to €0.04 in the previous year.

Segment Performance

The EMEA segment saw a slight revenue decline of 0.9%, while North America experienced a 2.6% drop. The CIS, APAC, and Latin America segment reported a 12.3% decrease in revenue, mainly due to lower volumes in Russia and rising raw material prices. The Sports segment maintained stable revenue at €429 million, matching the record level of the previous year.

Financial Debt and Leverage

Tarkett SA managed to control its financial debt, reporting a net financial debt of €620 million as of June 2024. This represents a leverage ratio of 2.0x adjusted EBITDA, an improvement from the 2.8x reported in June 2023. The company also recorded a free cash flow consumption of €76 million, in line with historical seasonality.

Summarized from source with an LLMView Source

Key figures

15.8%1Y

-43.1%3Y

-24.3%5Y

Performance

29.4%1Y

31.0%3Y

39.7%5Y

Volatility