Half Year 2024 Techtronic Industries Co Ltd Earnings Call Transcript
Key Points
- Techtronic Industries Co Ltd (TTNDF) reported a strong first half with sales increasing by 6.3% to USD 7.3 billion.
- The MILWAUKEE business delivered an 11.2% sales growth in local currencies, maintaining its position as the global #1 professional tools brand.
- Gross profit increased by USD 219 million to USD 2.92 billion, with a margin increase of 67 basis points to 39.9%.
- The company achieved record first half free cash flow of over $500 million.
- Net profit increased by 15.7% to $550 million, with margins improved by 60 basis points to 7.5%.
- SG&A expenses as a percentage of sales increased by 24 basis points to 31.5%, mainly due to a 54 basis points increase in R&D spend.
- Trade receivables increased by 6 days compared to the same period last year, reflecting timing issues in sales and procurements.
- The effective tax rate increased to 7.3% from 6.9% reported last year.
- The company faces challenges in some consumer segments, such as hard, rigid, and flex, which dragged overall consumer business growth.
- The geopolitical risks and potential tariffs pose a challenge, although the company has diversified its manufacturing footprint.
Good morning, ladies and gentlemen. Thank you for coming. Thank you, our Board of Directors here and most of our senior management from the U.S. and Europe and overseas. Thank you. It gives me a great pleasure to welcome all of you to TTI's Group's 2024 first half results announcement. I would like to start by introducing Steve Richman and is present on the recent promotion to TTI's Group CEO, Steven. Welcome aboard. We had an outstanding first half with sales outperforming the market on delivering double-digit profit and growth.
Our group Vice Chairman, Mr. Stephan Pudwill, will continue with our opening remark, but let me tell you one thing. We don't care what's out there. We only care about our shareholder, our investor to deliver with best results. And we don't care what happened competition up or down, which has not happened in this case or down. But our first focal point are our investors. Thank you very much, Stephan. I hand you over.
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