FLUIDRA, S.A. 
Q1 2024 RESULTS
May 8th 2024
Disclaimer
This document is for information purposes only and does not constitute an offer to sell, exchange or buy, or an invitation to make offers to buy, securities issued by any of the companies mentioned. This financial information has been prepared in accordance with international financial reporting standards (IFRS). However, as it has not been audited, the information is not definitive and may be modified in the future.
The assumptions, information and forecasts contained herein do not guarantee future results and are exposed to risks and uncertainties; actual results may differ significantly from those used in the assumptions and forecasts for various reasons.
The information contained in this document may contain statements regarding future intentions, expectations or projections. All statements, other than those based on historical facts, are forward-looking statements, including, without limitation, those regarding our financial position, business strategy, management plans and objectives for future operations. Such forward-looking statements are affected, as such, by risks and uncertainties, which could mean that what actually happens does not correspond to them. These risks include, amongst others, seasonal fluctuations that may change demand, industry competition, economic and legal conditions, restrictions on free trade and/or political instability in the markets where the Fluidra group operates or in those countries where the group's products are manufactured or distributed. The Fluidra group makes no commitment to issue updates or revisions concerning the forward-looking statements included in this financial information or concerning the expectations, events, conditions or circumstances on which these forward-looking statements are based.
In any event, the Fluidra group provides information on these and other factors that may affect the company's forward-looking statements, business and financial results in documents filed with the Spanish national securities market commission. We invite all interested persons or entities to consult these documents.
Alternative Performance Measures (APMs)
This document and any related conference call or webcast (including a Q&A session) contain, in addition to the financial information prepared in accordance with IFRS, alternative performance measures ('APMs') as defined in the Guidelines issued by the European Securities and Markets Authority ('ESMA') on October 5, 2015.
APMs are used by Fluidra's management to evaluate the group's financial performance, cash flows or financial position in making operational and strategic decisions for the group and therefore are useful information for investors and other stakeholders. Certain key APMs form part of executive directors, management and employees' remuneration targets.
APMs are prepared on a consistent basis for the periods presented in this document. They should be considered in addition to IFRS measurements, may differ to definitions given by regulatory bodies relevant to the group and to similarly titled measures presented by other companies. They have not been audited, reviewed or verified by the external auditor of the Fluidra group. For further details on the definition, explanation on the use, and reconciliation of APMs, please see the appendix as well as the "Alternative performance measures" document from our website here (link).
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Today's speakers
Eloi Planes | Bruce Brooks | Xavier Tintoré |
Executive Chairman | CEO | CFO |
3
Key messages
1. Q1 in line with expectations, confident in full year delivery
- Aftermarket demand remains resilient
- Regional dynamics unchanged: North America stronger than Europe
- Easter holiday in March reduced number of trading days and "season planning"
- Simplification Program continues to drive gross margin expansion despite lower volumes
- Solid balance sheet. Improved working capital and net debt levels YoY
2. Consistent capital allocation framework
- Continued focus on cash generation and deleveraging while investing in organic growth, accretive M&A and maintaining a consistent dividend policy - > proposed 2023 dividend of €0.55 per share, or 50% 2023 Cash EPS payout
3. FY 2024 guidance unchanged
4. Reinforcing our leadership in an attractive industry
4
Q1 in line with expectations
YTD financial highlights €M | 2023 | 2024 | Evol. 24/23 | Const. FX & |
Perimeter | ||||
Sales | 554 | 527 | (4.8%) | (4.4%) |
EBITDA | 121 | 118 | (1.9%) | (0.7%) |
EBITA | 99 | 95 | (4.1%) | (3.1%) |
Cash EPS | 0.31 | 0.31 | (1.9%) | |
Operating net working capital | 732 | 588 | (19.7%) | (20.0%) |
Net debt | 1,478 | 1,345 | (9.0%) | (9.3%) |
Net debt / LTM EBITDA | 3.2x | 3.0x | (0.2x) | |
- Saleswith lower volumes, as expected, due to less trading days in the quarter, partly offset by price increases
- EBITDAbroadly stable YoY, with
expanded gross margin mostly compensating for lower sales - Cash EPSsimilar to prior year
- Good working capital management - as % of LTM sales, operating NWC of 29% improved more than 300 bps vs prior year
- Solid cash generation, net debt€133 million lower YoY
- Leverage ratio slightly improved YoY
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Simplification Program on track and delivering
>€30M incremental savings | |
€31M savings | expected in 2024 |
(achieved €6M as of Q1) |
Total gross savings from the Simplification Program
Reducing structure overlaps
Global procurement savings
Design to Value (DtV)
SKUs rationalization
Dec 2022 | Dec 2023 | Dec 2024 |
€100M
1/3 | Fixed cost |
2/3 | Variable cost |
Dec 2025
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Expanding successful line of innovative cordless robots
Freerider
Residential in ground pools
2023 season launch
Pixel
Above ground pools
2024 season launch
Spabot
Spas and hot tubs
2024 season launch
Premium range cordless robotic cleaners, addressing #1 user issue: the
cord! Leveraging success of 2023 season launch
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Q1 sales in line with expectations
YoY growth (%)
Sales by geography
Southern Europe
Rest of Europe
North America
Rest of the World
Total
Const. FX &
Perimeter
YTD 2024
(12.3%)
(8.9%)
0.7%
0.1%
(4.4%) | (1%) | 1% | 1% | (6%) | (5%) |
Volumes reflect less trading days in the quarter and improving North
America' demand
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Solid margin expansion despite volume decline
YTD results €M | 2023 | % Sales | 2024 | % Sales | Evol. |
24/23 | |||||
Sales | 554 | 100% | 527 | 100% | (4.8%) |
Gross margin | 289 | 52.1% | 289 | 54.8% | 0.2% |
Opex | 168 | 30.3% | 171 | 32.4% | 1.7% |
EBITDA | 121 | 21.8% | 118 | 22.4% | (1.9%) |
D&A (non-PPA related) | 21 | 3.9% | 23 | 4.4% | 7.8% |
EBITA | 99 | 17.9% | 95 | 18.0% | (4.1%) |
Amortization (PPA related) | 17 | 3.0% | 16 | 3.0% | (5.4%) |
Restructuring, M&A, integration expenses and SBC | 9 | 1.6% | 15 | 2.8% | 63.5% |
Financial result | 17 | 3.1% | 13 | 2.5% | (21.6%) |
Income tax expense | 15 | 2.7% | 14 | 2.6% | (7.2%) |
Profit/loss attributable to NCI | 1 | 0.1% | 1 | 0.1% | 3.9% |
Profit/loss attributable to the parent | 41 | 7.4% | 37 | 7.0% | (10.2%) |
Cash net profit | 60 | 10.9% | 59 | 11.2% | (1.9%) |
Notes: SBC = Stock based compensation; NCI = Non-controlling interests
- Sales in line with expectations for the year, reflecting less trading days in the quarter
- Gross margin strongly improved YoY mainly driven by the Simplification Program, geographic and product mix
- Operating expenses reflect labor and general costs inflation as well as continued investment in IT and R&D
- Enhanced EBITDA margin YoY
- Restructuring, M&A and integration expenses mainly driven by Simplification Program efforts
- Financial result lower YoY, with lower cash interest expense
- Cash net profit broadly stable YoY
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Cash flow reflects usual business seasonality
Cash flow (abridged) and net debt YTD €M | 2023 | 2024 | Evol. 24/23 | • | CF from operating activities slightly |
lower mainly due to higher | |||||
Restructuring, M&A and integration | |||||
EBITDA | 121 | 118 | (2) | ||
expenses | |||||
Net interest expense paid | (17) | (15) | 3 | ||
Corporate income tax paid | (7) | (9) | (2) | • | CF from investing activities reflects |
Operating working capital | (221) | (220) | 2 | ||
Other operating cash flow(1) | (2) | (8) | (6) | organic investment in the business | |
CF from operating activities | (127) | (133) | (6) | • | Financing cash flow stable YoY |
Capex | (14) | (13) | 1 | ||
Acquisitions / divestments | (10) | (1) | 9 | • | |
Other investment cash flow | 0 | 3 | 3 | Net debt reduced by €133 million | |
CF from investing activities | (24) | (12) | 12 | YoY | |
Payments for lease liabilities | (9) | (11) | (2) | ||
Treasury stock, net | 1 | 0 | 0 | ||
Dividends paid | 0 | (1) | (1) | ||
Financing cash flow | (9) | (12) | (3) | ||
Free cash flow | (160) | (157) | 3 | ||
Prior period net debt | 1,319 | 1,172 | (147) | ||
FX & lease changes | (1) | 15 | 17 | ||
Free cash flow | 160 | 157 | (3) | ||
Net debt | 1,478 | 1,345 | (133) | ||
Lease liabilities | (190) | (203) | (13) | ||
Net financial debt | 1,288 | 1,142 | (147) |
(1) Includes Restructuring, M&A and integration expenses
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Disclaimer
Fluidra SA published this content on 08 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 May 2024 06:26:05 UTC.
