Tarkett Reports Double-Digit Revenue Growth in Q1
Paris, FR, April 25, 2019-Tarkett reports organic growth of 3.7% YOY in Q1 2019, driven by EMEA (+5.8%) and Sports (+19.4%).
Net revenues rose in Q1 2019 10.0% (at current exchange rates) to €625 million versus Q1 2018.
In the North American business, revenues rose 19.7% YOY. The North America segment was down 0.6% year-on-year on a like-for-like basis as selling prices were materially raised and almost fully offset volume decrease. Commercial carpet activity sales stabilized in the quarter and revenues in resilient flooring were slightly below last year’s levels after a buoyant 2018. The integration of Lexmark led to a positive perimeter impact of 12.4% representing most of the revenue growth during the quarter. In April, the manufacturing optimization plan in North America announced to extract synergies from Lexmark integration and reduce cost base in the region.
Commenting on these results, Fabrice Barthélemy, CEO, said, “In the first quarter of 2019, Tarkett achieved sound organic growth driven by a good dynamic in EMEA and continuing momentum in Sports. In North America, the focus has been on improving operational efficiencies. In the CIS and Latin America, our proactive pricing policy enabled us to offset adverse currency movements. The business environment remained challenging with inflationary raw material and freight costs. We are very satisfied that pricing increases implemented in 2018 fully covered cost inflation in the first quarter. We will continue to manage the sales pricing with this aim and remain focused on our 2019 top priorities of sustainable profitability improvement and deleveraging.”