TTNDY - Techtronic Industries Company Limited (TTNDY) Q4 2023 Earnings Call Transcript
2024-03-08 12:18:23 ET
Techtronic Industries Company Limited (TTNDY)
Q4 2023 Results Conference Call
March 07, 2024 07:00 AM ET
Company Participants
Horst Pudwill - Chairman
Stephan Pudwill - Vice Chairman
Joe Galli - CEO
Steve Richman - Senior Group President of MILWAUKEE
Shane Moll - Group President of MILWAUKEE Power Tools
Tim Albrecht - Group President of Hand Tools, Storage, Personal Protective Equipment and Channel Marketing
Frank Chan - CFO
Presentation
Horst Pudwill
Good morning, ladies and gentlemen. It gives me great pleasure to welcome all of you to TTI's Group of Company's 2023 Full Year Announcement. This is the first time in person, a result announcement since August 2019, and all of you have not aged a bit. I'm extremely excited to be here and share 2023 full year results with you. Our Group Vice Chairman, Mr.
Stephan Pudwill, will continue our opening remarks, and I will give some more comments later towards the end of this presentation. Thank you, Stephan, please.
Stephan Pudwill
Thank you, Chairman. We've had a remarkable few years, with revenue almost doubling since 2018. We've made significant investments in product development, bolstering our supply chain, optimizing our manufacturing facilities, further strengthening our leadership position at TTI. With revenue up 10.2% in the second half, world-class working capital management and exceptional $1.3 billion in free cash flow, the team is extremely excited with the outstanding job that we've done. So in addition to having Joe Galli with us today, and it's always a pleasure having Joe in Hong Kong, I'm extremely excited to introduce to you the senior executive team we have from MILWAUKEE.
Today, we have Mr. Steven Richman, Steven, stand up. So Steven is our Senior Group President of MILWAUKEE. We have Shane Moll, Shane is Group President of MILWAUKEE Power Tools, and we have Tim Albrecht, Group President of Hand Tools, Storage, Personal Protective Equipment and Channel Marketing. The MILWAUKEE team has done an exceptional job this past decade, and it is an absolute honor to have the team here today to present for the very first time in person at the TTI annual results announcement.
Joe and his team have done an exceptional job, and it is also an honor to pass the floor over to our Group CEO, Joe Galli; and our Group CFO, Mr. Frank Chan. I hope you like this presentation and the extremely strong results that we delivered in 2023 in what our competitors would certainly call a challenging year. Thank you very much.
Frank Chan
Thank you, Mr. Chairman and Stephan. Yes. As Stephan said, we've made great improvements in the second half 2023 versus 2022, and delivered a full year revenue of USD 13.7 billion, an increase of 3.6% or 3.9% in local currencies as compared to a sales decline of 2.2% first half last year of 2023. MILWAUKEE, Consumer and Floorcare all delivered growth in the second half year, with MILWAUKEE in particular, grew by 12.7% and delivered a full year sales growth of 10.7% in local currencies.
Gross profits increased by 4% to USD 5.4 billion, with margin improved for the 15th consecutive year by 14 basis points to 39.5%. The improvement is mainly from favorable sales mix of margin-accretive MILWAUKEE business, battery aftermarket sales, new innovative products and highly focused manufacturing cost controls. EBIT for the full year was at $1.1 billion, down 5.5% as compared to 2022. The reduction mainly due to the contraction of the consumer business and the onetime additional promotional activities and causes to drive finished goods inventory reduction....
Techtronic Industries Company Limited (TTNDY) Q4 2023 Earnings Call Transcript