TARKETT H1 results: performance reflecting progressive sales recovery and inflation in purchasing and freight costs in Q2.
Q2 and Half Year 2021 Results:
- Net revenues up +2.0% in H1 2021 versus H1 2020 thanks to Q2 2021 performance (revenues up +16% organically in Q2 2021), reflecting organic growth of +6.3% and negative forex impacts;
- Adjusted EBITDA at €112.7 million in H1 2021, or 8.9% of net revenues (versus 8.6% in H1 2020) as margin recovery was impeded by inflation in purchasing and freight costs in Q2;
- Adjusted EBIT of €37.9 million versus €25.1 million in H1 2020;
- Net profit breakeven in H1 2021 compared to a loss of -€64.9 million in H1 2020, which included a non-cash impairment charge of -€54 million;
- Free cash flow of -€43.9 million in H1 2021, a lower cash consumption than its usual seasonality reflecting a low level of inventories due to shortages in the supply chain;
- Net debt at €523.6 million well under control, reflecting a net financial leverage of 1.8x (after IFRS16 application) at the end of June 2021 compared to 2.8x at end of June 2020;
- Recovery remains muted due to slow improvement in Workplace and Hospitality. Inflation in purchasing costs and raw material shortages accelerated recently, resulting in a negative inflation impact now estimated at €130 million in 2021 (versus €100 million anticipated in April);
- Therefore the Group expects its 2021 Adjusted EBITDA margin to be below its 2020 margin of 10.6%. The Group confirms, as announced in April, that it will not reach its mid-term target (at least 12%) by 2022 and anticipates that it will be delayed by at least one year.
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Tarkett SA published this content on 29 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 July 2021 15:48:08 UTC.
