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Fluidra Sales Grew by 15% in the First Nine Months of the Year
Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Neutral)
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Rhea-AI Summary
Fluidra reported sales of 1,967 million euros for the first nine months of 2022, a 15% increase from 2021. EBITDA reached 456 million euros with a margin of 23%. North America led growth with a 30% rise, while the Rest of Europe saw a 13% decline due to inventory corrections and macroeconomic uncertainties. The company updated its 2022 guidance to forecast sales of 2.4 billion euros, expecting 10% growth. A simplification program aiming for 100 million euros in savings over three years has been initiated.
Positive
Sales increased by 15% year-on-year, reaching 1,967 million euros.
North America showed a 30% growth in sales.
Updated sales guidance for 2022 forecasts 2.4 billion euros, indicating a near 10% year-on-year growth.
EBITDA is expected to exceed 500 million euros.
A simplification program aims to deliver 100 million euros in savings over three years.
Negative
Cash Net Profit decreased by 9% due to a one-off tax benefit in 2021.
Volume slowdown was noted due to higher than expected inventory corrections in North America and Europe.
Decline of 13% in sales for the Rest of Europe amid macro uncertainty and an energy crisis.
Sales reached 1,967 million euros and EBITDA was up to 456 million euros
Fluidra updated its guidance last week and forecasts sales around 2.4 billion euros this year, which implies a growth of close to 10% year-on-year
BARCELONA, Spain--(BUSINESS WIRE)--
Fluidra, global leader in pool and wellness equipment and connected solutions, ended the first nine months of the year with sales of 1,967 million, up 15% on the same period of 2021. Sales grew driven by price, acquisitions and forex which more than offset volume slow down.
EBITDA was up to 456 million euros with a 23% margin that was impacted by an unfavourable mix and lower volume. The relationship between price and inflation is improving, with accelerated price capture in North America and some raw materials costs starting to decline.
Cash Net Profit reached 260 million euros, down 9% compared to 2021 which is due to the one-off tax benefit from the Zodiac merger taken in Q2 2021.
Higher than expected channel inventory correction in North America and Europe pressured volume and its slowdown is impacting Fluidra’s inventory position and cash flow generation. Net Debt/LTM EBITDA ratio was at 2.4x.
In terms of geographical areas, growth was led by North America, which delivered a 30% increase from January to September boosted by inorganic activity. Southern Europe was up 10%, with softness in France partially offset by better performance in the Mediterranean region helped by tourist season.
Affected by a correction of inventory levels in the channel, the energy crisis and macro uncertainty, the Rest of Europe saw a decline of 13%. Meanwhile, the Rest of the World witnessed a strong evolution led by Australia, reporting an increase of 28%.
Looking forward, demand is transitioning towards more normalized levels. Fluidra updated its guidance last week for the 2022 financial year. The Company forecasts sales around 2.4 billion euros this year (which implies a growth of close to 10% year-on-year), EBITDA to be over 500 million and Cash EPS over 1.30 euros.
Fluidra has revised upwards the target of its simplification program, which is currently being implemented, and is now expected to deliver 100 million euros of savings over the next three years, anticipating to reach one third of them in 2023. This program focuses on redesigning its product offering to deliver cost benefits, streamlining the operations to be more efficient and simplifying the organization.
“Despite the global uncertainty, Fluidra is a stronger business than in 2019. We gained market share in North America with a broader product offering, expanded our distribution network in Europe and enhanced our scope in Commercial Pool. This allows us to be well positioned to continue to lead the pool and wellness market”, explains Eloi Planes, Fluidra’s Executive Chairman.
