Interface Increased Net Sales 24% in Q1 with Nora
Atlanta, GA, April 25, 2019- Interface reported Q1 net sales rose 24% YOY to $298 million.
Organic sales were up 2% year-over-year.
Nora contributed $60 million of net sales in the quarter, up 9% in local currency compared to the stand-alone business in Q1 2018.
The company recorded net income in Q1 2019 of $7 million, compared to Q1 2018 net income of $15 million.
"We started off 2019 with another solid quarter, in line with our expectations. We continue to deliver on our value creation strategy and remain on track to achieve our 2019 objectives," said Jay Gould, CEO of Interface. "First quarter organic sales were up 2% as anticipated. The marketplace response to our Carbon Neutral Floors program has been very positive, allowing us to take share in carpet tile in key markets and drive growth in LVT. The integration of Nora Systems into the Interface family is generating promising results with Nora rubber flooring sales up 9% in local currency versus the prior year period. Our strategic investment in Nora, the transformation of our selling system, and advancements in our manufacturing capabilities are successfully fueling growth."
Analyst Stifel notes, “We note the Q1 organic growth was primarily driven by LVT demand, which, as we have noted many times, is still very strong industry-wide. The Q1 carpet tile comparisons were difficult due to some order timing in the prior year. The remainder of the year is still expected to grow at 2-4% on an organic basis.
“We note the 9% growth from Nora y/y was a step up from prior trends. The company believes the cross-selling opportunities are already having a favorable impact on results.”