TECHTRONIC INDUSTRIES RECORDS STEADY 2022 ANNUAL RESULT

KUALA LUMPUR, March 2 (Bernama) -- Global power equipment and floorcare & cleaning company, Techtronic Industries Co Ltd (TTI or the Group) has announced the company’s audited consolidated results and its subsidiaries for the year ended Dec 31, 2022.

Its Chief Executive Officer, Joseph Galli in a statement said TTI is well positioned to outperform the market in 2023.

“We have not only right-sized our selling, general and administrative expenses (SG&A) cost base, but also streamlined our fixed overhead position and prudently managed our production levels while developing a stream of innovative new products,” he said.

After nearly doubling the revenue base from 2018 to 2021, TTI delivered 2.8 per cent local currency sales growth in 2022 due to the extraordinary growth of the Group’s flagship MILWAUKEE business of 21.8 per cent in local currency, offsetting declines in its consumer and floorcare businesses.

Gross margin improved for the 14th consecutive year, from 38.8 per cent in 2021 to 39.3 per cent, up 54 basis points in 2022 while Earnings Before Interest and Taxes (EBIT) increased 0.8 per cent to US$1.2 billion with margin up slightly to 9.1 per cent. (US$1 = RM4.46)

Net Profit declined 2.0 per cent to US$1.1 billion due to higher interest expense, and earnings per share declined 2.0 per cent to 58.86 cents.

The Group generated free cash flow of US$329 million, with a tremendous improvement in the second half. Working capital to sales finished the year at 21.2 per cent compared to 20.9 per cent a year ago.

Meanwhile, TTI Chairman, Horst Pudwill said, the company is well positioned to further expand its global industrial, professional and consumer leadership position with a strong increase in free cash flow and a healthy balance sheet.

”We are highly confident in our ability to continue driving market share gains and to outperform the market in 2023,” he added.

The Board is recommending a final dividend of HK90.00 cents (approximately 11.58 cents) per share. Together, with the interim dividend of HK95.00 cents (approximately 12.23 cents) per share, thus resulting in a full-year dividend of HK185.00 cents (approximately 23.81 cents) per share, same as last year.

-- BERNAMA