Third quarter 2019 results
Organic growth of +2.6% despite challenging trading conditions
Cost savings program on track
Moderate adjusted EBITDA margin increase
- Net sales at €907.1 million in Q3 2019 (+8.0% versus Q3 2018)
- Positive organic growth(1) (+2.6%) in Q3 2019, driven by 10.5% organic growth in Sports and stable sales in EMEA and CIS, APAC & Latam
- Selling price increases offset purchasing costs and wage inflation
- Acceleration of cost savings: €12.1 million of net productivity gains and SG&A reduction
- Adjusted EBITDA(2) before IFRS 16 application at €107.5 million or 11.8% of revenues versus €97.7 million and 11.6% in Q3 2018
- Reported adjusted EBITDA(2) (after IFRS 16 application) at €115.0 million in Q3 2019
- A positive amount of €5.4 million related to litigation settlements in Sports included in adjusted EBITDA
- Dedicated action plan being rolled out to restore operating performance in North America
Commenting on these results, CEO Fabrice Barthélemy said:
“ In the third quarter, our business delivered positive organic growth and encouraging results. Our profitability improvement has been, however, impeded by the weakness of the North American performance. Therefore we are rolling out a specific action plan to regain momentum in North America. We are strengthening our offering through a set of new product introductions to improve alignment with customer requirements.
Through our Change to Win plan, we are targeting to be the leader in commercial flooring and selectively grow in residential. We also aim at improving profitability and we started seeing results of our cost actions in the quarter. We are also simplifying our operational processes and focusing our organization on the needs of our customers. We are now accelerating cost savings measures, particularly in North America, EMEA and at the corporate level. Our actions to reduce our leverage by the end of the year are on track. ”
(1) Organic growth is the revenue growth on a like-for-like basis, i.e. at constant scope of consolidation and exchange rates, and therefore only reflects changes in volumes, prices and the product mix (note that in the CIS segment, price increases implemented to offset currency fluctuations are not included in organic growth). See the definition of alternative performance indicators at the end of this press release.