Full Year 2020 results
FY 2020 results:
- Net revenues down -12.0% in 2020 (-9.5% organically) reflecting progressive recovery in H2;
- Stable Adjusted EBITDA compared to 2019 at €277.9 million in 2020, including €14.8 million of insurance indemnification received in December for the loss generated by Q2 cyber-attack;
- Adjusted EBITDA margin up 120 basis point year-on-year at 10.6% thanks to significant cost savings and lower purchasing costs;
- €105.9 million of cost reduction in 2020, including a successful mitigation plan and €46.3 million of structural savings;
- Net loss of -€19.1 million, impacted by non-cash impairment charge taken in H1 2020 (H1 net loss: -€64.9 million, H2 net profit: €45.8 million);
- Solid free cash-flow generation of €163.5 million in 2020 compared to €105.1 million in 2019 (free cash flow excluding implementation of factoring programs);
- Significant debt reduction with reported financial leverage at 1.7x (after IFRS16 application) at end of December 2020 compared to 2.3x at end of December 2019;
- Solid fundamentals to cope with a muted recovery and inflation in purchasing costs in 2021, mid-term financial objectives still valid but the environment may slightly delay the timing of the profitability objective.
Paris, February 18, 2021: The Supervisory Board of Tarkett (Euronext Paris: FR0004188670 TKTT) met today and
reviewed the Group’s consolidated results for the full year 2020.
The Company uses alternative performance indicators (not defined by IFRS) described in appendix 1 (page 8):
Commenting on these results, CEO Fabrice Barthélemy said: “Our performance in 2020 demonstrated the resilience of our business model in a depressed and complex environment. Thanks to structural savings and a rigorous mitigation plan, we have been able to improve our Adjusted EBITDA margin by 120 basis points. We have tightly managed working capital, generated strong free cash-flow and deleveraged significantly. Demand continued to pickup sequentially in Q4, and we ended the year in a healthy financial situation.
We have implemented new cost reduction actions in the fourth quarter while pursuing our Change to Win top line initiatives. We are also continuing to tackle the climate emergency through eco-design, circular economy and reduction of our greenhouse gas emissions at our industrial sites. We are well advanced on our strategic roadmap.
The environment, however, remains challenging and we are cautious on the pace of recovery.”
See complete Press Release: EN - FR