Strong 2016 Results
Organic growth of 1.7%
17% increase in adjusted EBITDA, for a margin of 12.2%
Net profit up 42%
Net sales at constant scope of consolidation and exchange rates grew by 1.7% in 2016. Tarkett benefited from strong growth in the Sports (+6.1%), North America (+3.7%), and EMEA (+3.1%) segments over the full year. In the CIS, APAC and Latin America segment, net sales decreased by 6.4% over the year but improved in the last quarter, with a positive organic growth of 0.7%. The Sports segment recorded solid growth for the third consecutive year. All segments had positive organic growth in the fourth quarter.
Reported sales grew by 0.9% vs. 2015. Exchange rates had a negative impact (-0.8%), due in particular to the decline in the British pound. In the CIS countries, the increased strength of the ruble as well as successive selling price increases limited the net exchange rate effect for the full year which was positive in the second half of 2016. The scope of consolidation had no effect on the year.
Adjusted EBITDA reached €334m vs. €285m in 2015, a rise of 17%. Adjusted EBITDA margin increased by 170 basis points as compared with 2015, reaching 12.2%. The margin improved in all segments, and in particular in the CIS, APAC and Latin America segment. Favorable raw material prices provided a benefit of €19m over the year. In addition, productivity gains reached 2.5% of production costs.
Net profit attributable to owners of the Company totaled €119m, a 42% increase from 2015.
Cash flow generated at year-end has been strong as a result of good working capital management in the second half of the year. Net debt amounted to €378m, leading to an improvement of the leverage ratio to 1.1x adjusted EBITDA (1.7x at year-end 2015).
Commenting on these results, Michel Giannuzzi, CEO, said:
“I am very proud of Tarkett’s 2016 results, achieved thanks to a particularly strong fourth quarter with a good growth in all segments and an increase in EBITDA margin."
To know more about the results, clik here