Tarkett Maintains EBITDA Margins on 12.4% Decline in Revenue in First Half of 2020
Paris, France, July 30, 2020–Tarkett has announced that its revenues for the first half 2020 were down 12.4% over 2019 after a 20.5% drop in Q2 related to virus-induced shutdowns.
The first half of 2020 saw revenues at €1,237 million, compared to $1,412.3 million during the same time last year. Adjusted EBITDA margin was preserved thanks to significant cost reduction measures and reached 8.6% in H1 2020, down only 40 basis points compared to H1 2019. For the second quarter, revenues were €626.3 million.
Flooring activities were organically down -24.6% compared to last year. Sports was less affected and down by only -5.7% on a like-for-like basis as installation was still possible in North America during the whole quarter. Sales were also disrupted by a cyber-attack which affected operations in the first two weeks of May.
The North American segment reported net revenues of €357.7 million, down -16.7% compared to H1 2019, reflecting organic decline of -18.6% and a positive forex impact related to the appreciation of the dollar versus the euro over the period.
The hospitality segment was particularly affected in H1 2020 due to projects postponed or stopped as travel restrictions affected the industry. Workplace has also been significantly affected. Residential, however, improved and grew at the end of the quarter in line with market trends (increased refurbishment and new home construction). Several production sites have been temporarily closed for short periods in Q2 and remote working for office work is still in place in most locations.
Tarkett reported a gradual improvement in sales trends over Q2, reflecting pandemic and lockdown evolution.
“As anticipated, the second quarter has been significantly impacted by COVID-19, with lockdown measures implemented throughout most of our regions,” says CEO Fabrice Barthélemy. “... Although we saw some gradual improvements over the second quarter, we remain cautious about the second half of the year as some of our key regions, like North America, are still fighting the pandemic.”