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Solid Q3 performance: Increased profitability and strong deleveraging

2020 Third Quarter Results

  • Like-for-like revenues down -10.5% versus Q3 2019 (whereas Q2 organic change was down 20.3%) and net revenues down -14.4% versus Q3 2019
  • Adjusted EBITDA up at €118 million in Q3 2020 versus €115 million in Q3 2019; margin at 15.2% of net revenues compared to 12.7% in Q3 2019, up 250 basis points
  • Significant cost reduction of €34 million in Q3, including €16 million of structural savings
  • Lower purchasing costs by €16 million in Q3, driven by oil price declines in Q2 2020
  • Deleveraging thanks to strong free cash flow generation. Net financial debt, including leases recorded under IFRS 16, of €585 million or 2.2x LTM Adjusted EBITDA at the end of September
  • Strong level of liquidity at the end of September (€1.1 billion)
  • 2020 Adjusted EBITDA margin expected broadly in line with last year’s margin (2019: 9.4%) and financial leverage (financial debt to LTM Adj. EBITDA) below 3.0x at the end of December

Paris, October 28, 2020: The Supervisory Board of Tarkett (Euronext Paris: FR0004188670 TKTT) met today and reviewed the Group’s consolidated results for the third quarter 2020.

The Company uses alternative performance indicators (not defined by IFRS) described in detail in appendix 1 (page 6). Adjusted EBITDA, as reported, is presented below after IFRS 16 consideration:

Commenting on these results, CEO Fabrice Barthélemy said: “Since the outbreak of the Covid-19 pandemic, we have been focused on protecting the health and safety of our employees and customers and preserving profitability and cash flows. In March, we accelerated cost reduction actions and identified additional opportunities for cost savings. We have successfully delivered so far and have demonstrated the resilience of our business model. In the third quarter, we increased our profitability compared to last year, while deleveraging and maintaining a strong level of liquidity. Amidst challenging market conditions, our teams are fully committed to seize new opportunities, gain market share and intensify our Change to Win strategic roadmap deployment.”​

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