Q1 2024 Revenue:
Organic sales slightly down, in line with forecasts
Demand for flooring in
Continued growth of Sports in a market that is still solid
First Quarter 2024 Results
- Organic decline in sales of -2.7% compared to Q1 2023, mainly due to lower volumes in
Europe andNorth America - Sales prices remained stable over the quarter (-0.3%)
- The Sports segment continues to grow at a steady pace: +7.9% organic growth
- In EMEA, business volume is down compared to Q1 2023 given the persistently weak demand throughout the area
- In
North America , the Residential segment is still low, while Commercial is holding up well, showing only a slight fall compared to last year - In the CIS and
Asia , activity is stable;Latin America is down, hampered by a particularly low demand
The Group uses alternative performance indicators (not defined under IFRS), described in detail in the Appendix of this document:
Turnover in millions of euros | Q1 2024 | Q1 2023 | Change | Of which organic growth |
EMEA | 221.3 | 230.2 | -3.9% | -6.3% |
198.9 | 214.2 | -7.1% | -6.0% | |
CIS, APAC & | 106.7 | 121.7 | -12.3% | -1.3% |
Sports | 141.2 | 132.3 | +6.3% | +7.9% |
Group Total | 668.1 | 698.4 | -4.3% | -2.7% |
1. Revenue for the first quarter 2024
Net revenue of the Group amounted to €668 million, down -4.3% compared to the first quarter of 2023, and organic growth was -2.7% (or -2.2% including sales price changes in the CIS region(1) ). Sales prices remained stable over the financial year, i.e., -0.3% compared to the first quarter of 2023.
The EMEA segment achieved a net revenue of €221 million, down -3.9% compared to the first quarter of 2023, including a favourable exchange effect of +0.5% and a scope effect of +1.9% (integration of activities in
The
Net revenue in the CIS, APAC and
Activity in the Sports segment continued to grow in the first quarter despite an already high baseline. Net sales amounted to €141 million, up +6.7%, including +7.9% organic growth compared to the first quarter of 2023, and a negative currency effect linked to the depreciation of the dollar against the euro (-1.2%). Demand remains strong for artificial turf and athletics tracks in
2. Outlook
As expected, the beginning of 2024 was marked by a decline in activity in the flooring sector. High interest rates and persistent inflation have led to the cancellation or postponement of many new construction and renovation projects. The Group does not expect a rapid improvement in the environment, although situations may differ between regions and Residential or Commercial segments.
As the European market is experiencing the most severe slowdown, the Group recently announced measures to reorganise and reduce costs in this area. It implements a more agile, customer-centric operating model and continues to optimise the industrial organisation to better respond to the challenging environment and generate profitable and sustainable growth.
In
The Sports segment has a solid order book in all its activities and is expected to continue to grow in 2024 at a less sustained pace than in the last two financial years (+33.4% organic growth in 2022 and +20.1% in 2023)
In this context, the Group continues to adapt its production level and cost structure while investing in the launch of new products in particular ranges that include more recycled products, and the renewal of existing collections.
1) Selling price adjustments in the CIS countries are historically intended to offset currency fluctuations and are therefore excluded from the “organic growth” indicator (see Appendix 1)
This press release may contain forward-looking statements. These statements do not constitute forecasts regarding results or any other performance indicator, but rather trends or targets. These statements are by their nature subject to risks and uncertainties as described in the Company’s Registration Document available on its website (https://www.tarkett-group.com/en/category/urd/). They do not reflect the future performance of the Company, which may differ significantly. The Company does not undertake to provide updates to these statements.
Financial calendar
25 April 2024 : Q1 2024 Turnover - press release after close of trading26 April 2024 : Annual General Meeting25 July 2024 : Financial results for H1 2024 - press release after close of trading24 October 2024 : Q3 2024 Turnover - press release after close of trading
Investor Relations and Individual Shareholders Contact
investors@tarkett.com
Media contacts
Brunswick - tarkett@brunswickgroup.com - Tel.: +33 (0) 1 53 96 83 83
Hugues Boëton – Tel.: +33 (0) 6 79 99 27 15 –
About
With a 140-year history,
Appendices
1/ Definition of alternative performance indicators (not defined under IFRS)
- Organic growth measures the change in turnover compared with the same period in the previous year, excluding the exchange rate effect and changes in scope. The foreign exchange effect is obtained by applying the previous year’s exchange rate to sales for the current year and calculating the difference with sales for the current year. It also includes the effect of price adjustments in the CIS countries intended to offset the change in local currencies against the euro.
- The scope effect is composed of:
- current year sales by entities not included in the scope of consolidation in the same period of the prior year, until the anniversary of their consolidation,
- the reduction in sales due to discontinued operations that are not included in the current year's scope of consolidation but were included in sales for the same period of the prior year, until the anniversary of their disposal.
In millions of euros | Q1 2024 Turnover | Q1 2023 Turnover | Change | Of which volume | Of which selling prices | Of which CIS selling prices | Of which exchange rate effect | Of which scope effect | |||
Group Total Q1 | 668.1 | 698.4 | -4.3% | -2.3% | -0.3% | +0.5% | -2.2% | +0.0% | |||
Of which organic growth | -2.7% | ||||||||||
Of which selling price increases | +0.2% |
2/ Bridge in million of euros Q1 2024
Q1 2023 | 698.4 |
+/- EMEA | -14.6 |
+/- | -12.9 |
+/-CIS, APAC & | -1.6 |
+/- Sports | +10.5 |
Q1 2024 at constant scope and exchange rates | 679.8 |
+/- Scope effect | +0.0 |
+/- Currencies | -15.2 |
+/- “Lag effect” in CIS | +3.5 |
Q1 2024 | 668.1 |
Attachment
- Press Release -
Tarkett - Q1 2024 results
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