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Techtronic Industries Delivers Exceptional First Half Sales Growth

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Techtronic Industries Co. Ltd. (TTNDY) reported impressive results for the first half of 2021, with sales soaring 52.0% to US$6.4 billion. This boost was accompanied by strong growth across all business segments, especially in the Power Equipment division, which increased by 55.3%. Gross margin reached 38.6%, and both EBIT and net profit rose by over 57%. The company also announced an interim dividend of approximately US10.94 cents per share, a 60.4% increase from the prior year. TTI's strategic inventory building aims to support ongoing growth and mitigate component shortages.

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AI-generated analysis. Not financial advice.

Positive

  • Sales grew 52.0% to US$6.4 billion.
  • EBIT increased 57.4% to US$572 million.
  • Net profit rose 57.9% to US$524 million.
  • Gross margin improved to 38.6%, up 58 basis points.
  • Interim dividend per share increased by 60.4% to approximately US10.94 cents.

Negative

  • None.

News Market Reaction – TTNDY

+3.43%
1 alert
+3.43% News Effect

On the day this news was published, TTNDY gained 3.43%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

HONG KONG, Aug 11, 2021 /PRNewswire/ -- Hong Kong-based global power equipment and floorcare company Techtronic Industries Co. Ltd. ("TTI" or the "Group") (stock code: 669, ADR symbol: TTNDY) announced its results for the six months ended June 30, 2021. The Group delivered extraordinary results for the first half of 2021, growing sales by 52.0% to US$6.4 billion. Gross margin improved for the 13th consecutive first half to 38.6%, and the growth in EBIT, net profit, and earnings per share all outpaced sales growth. EBIT increased 57.4% to US$572 million, net profit rose 57.9% to US$524 million, and earnings per share increased 57.8% to approximately US28.62 cents per share.

  • Exceptional sales growth of 52.0%
  • Sales growth of 71.5% over two years, compared to the first half of 2019
  • Strong sales growth across all businesses and geographies
  • Gross margin improved for the 13th consecutive first half to 38.6%, up 58 basis points
  • Net profit growth of 57.9% to US$524 million

Financial Performance Highlights for 1H 2021 





2021*

US$'

million

2020

US$'

million

 

 

Changes

Revenue

6,394

4,206

+52.0%

Gross profit margin

38.6%

38.0%

+58 bps

EBIT

572

363

+57.4%

Profit attributable to Owners of the Company

524

332

+57.9%

Basic earnings per share (US cents)

28.62

18.14

+57.8%

Interim dividend per share (approx. US cents)

10.94

6.82

+60.4%

*For the six-month period ended June 30, 2021

Working capital as a percent of sales finished at 18.3%, below TTI's goal of 20.0% or less. The Group continues to strategically build inventory to support its exceptional above market growth, to serve its customers with consistently high service levels, and to insulate the company from potential critical component shortages.     

The TTI Power Equipment segment delivered sales growth of 55.3% to US$5.8 billion. All geographies and business units contributed to this stellar performance in the first half of 2021. The flagship Milwaukee business delivered an astounding 64.1% growth globally. RYOBI performed exceptionally well across all brands with solid double-digit growth in all categories and geographies. In addition, the Floorcare & Cleaning business accounted for 9.0% of total TTI sales, with sales increasing 25.3% to US$574 million.

Mr. Horst Pudwill, Chairman of TTI, said, "At TTI, we have built an exceptional world-class team and we would like to recognize our outstanding global organization for delivering strong results. We are proud of the bold, strategic decisions we have made over the past 18 months to position ourselves for a strong second half of 2021."

Mr. Joseph Galli, CEO of TTI, commented, "TTI's first half results clearly demonstrate our leadership position, our momentum, and our future potential. Our high-speed new product machine allows us to expand the market and capture market share, while we continue to improve gross margin to record levels."

About TTI

Founded in 1985 and listed on the Stock Exchange of Hong Kong Limited in 1990, TTI is a world leader in cordless technology spanning Power Tools, Outdoor Power Equipment, Floorcare Cleaning Products and Solutions for the consumer, professional, and industrial users in the home, construction, maintenance, industrial and infrastructure industries. The Company has a foundation built on four strategic drivers – Powerful Brands, Innovative Products, Exceptional People and Operational Excellence - reflecting a long-term expansive vision to advance cordless technology. The global growth strategy of the relentless pursuit of product innovation has brought TTI to the forefront of its industries. TTI's powerful brand portfolio includes MILWAUKEE, AEG and RYOBI power tools, accessories and hand tools, RYOBI and HOMELITE outdoor products, EMPIRE layout and measuring products, and HOOVER, ORECK, VAX and DIRT DEVIL floorcare cleaning products and solutions.

TTI is one of the constituent stocks of the Hang Seng Index, FTSE RAFI™ All-World 3000 Index, FTSE4Good Developed Index and MSCI ACWI Index. For more information, please visit www.ttigroup.com.

All trademarks listed other than AEG and RYOBI are owned by the Group. AEG is a registered trademark of AB Electrolux (publ.), and is used under license. RYOBI is a registered trademark of Ryobi Limited, and is used under license. 

For enquiries:

Techtronic Industries Co. Ltd.
Isabella Chan
Tel:  +(852) 2402 6495
Email: isabella.chan@tti.com.hk 
Website:  www.ttigroup.com

Strategic Financial Relations Limited
Veron Ng      +(852) 2864 4831  veron.ng@sprg.com.hk  
Adrianna Lau +(852) 2114 4987  adrianna.lau@sprg.com.hk 
Karen Kwan +(852) 2114 4171  karen.kwan@sprg.com.hk 
Email: sprg_tti@sprg.com.hk 
Website: www.sprg.com.hk

Cision View original content:https://www.prnewswire.com/news-releases/techtronic-industries-delivers-exceptional-first-half-sales-growth-301353271.html

SOURCE Techtronic Industries Co. Ltd.

FAQ

What were the key financial results for TTNDY in the first half of 2021?

TTNDY reported a 52.0% increase in sales to US$6.4 billion, with EBIT up 57.4% to US$572 million and net profit rising 57.9% to US$524 million.

How did TTNDY's gross margin perform in the first half of 2021?

The gross margin improved for the 13th consecutive first half to 38.6%, reflecting a 58 basis points increase.

What is the interim dividend announced by TTNDY for 2021?

TTNDY announced an interim dividend of approximately US10.94 cents per share, which is a 60.4% increase compared to the previous year.

How did TTNDY's Power Equipment segment perform in H1 2021?

The Power Equipment segment achieved a 55.3% sales growth, reaching US$5.8 billion, with significant contributions from all geographies and business units.

What strategic approach is TTNDY taking to support its growth?

TTNDY is strategically building inventory to support exceptional growth and mitigate potential component shortages.