Hunter Douglas Nine Months 2020 Results

Hunter Douglas, the world market leader in window coverings (Luxaflex®) and a major manufacturer of architectural products, results for the first nine months 2020:

Sales:

USD 2,490.7 million, 10.3% lower, compared with USD 2,777.9 million in the first nine months of 2019.

The 10.3% sales decrease reflects a 8.3% volume decrease, 0.8% negative currency impact, a 1.1% increase from acquisitions and a 2.3% decrease from divestments. Volume decreased in all areas, except Australia where sales were level.

North America accounted for 50% of sales, Europe 40%, Asia 3%, Latin America 3% and Australia 4%. Window Coverings were 92% and Architectural Products 8% of sales.

Earnings before interest, tax, depreciation and amortization – EBITDA:

USD 368.1 million, 2.9% higher than USD 357.8 million in the first nine months of 2019.

Income from Operations (before non-recurring expenses):

USD 252.1 million, 2.5% lower than USD 258.5 million in the first nine months of 2019. Results in local currencies were lower in all areas, except in Europe and Australia where results were better.

Other Income/Expenses:

USD 133.0 million negative compared with USD 8.7 million negative in the first nine months of 2019. Hunter Douglas is restructuring its operations to an expected lower level of sales. The 2020 charges are USD 48 million for reorganization expenses mainly in North America and Europe and USD 85 million for adjustments to the future purchase prices of interests in partially owned companies.

Profit before Tax:

USD 113.3 million, compared with USD 239.8 million in the first nine months of 2019.

Total Net Profit:

USD 66.4 million (per share EUR 1.69), compared with USD 189.0 million in the first nine months of 2019 (per share EUR 4.84).

Capital expenditures were USD 45 million compared with USD 82 million in the first nine months of 2019, while depreciation was USD 99 million compared with USD 85 million in the same period last year. For the full year capital expenditures are expected to be approximately USD 70 million and depreciation USD 130 million.

Operating cash flow: USD 306 million compared with USD 389 million in the first nine months of 2019.

Shareholder’s equity was USD 1,830 million compared with USD 1,798 million at the end of 2019, reflecting the first nine months results decreased by a negative exchange translation.

RONAE (Return before interest/net assets employed) was 13.1% compared with 14.4% in the first nine months of 2019.

Q3 2020

Q3 Sales: USD 1,000.3 million, 3.7% higher than USD 965.1 million in the same period of 2019. The increase reflects a 4.8% volume increase, a 1.3% positive currency impact and a 2.4% decrease from divestments. Third quarter organic sales were higher in all areas, except in North America where sales were level and Latin America where sales were lower.

Q3 Earnings before interest, tax, depreciation and amortization – EBITDA:

USD 203.6 million, 57.5% higher than USD 129.3 million in Q3 2019.

Q3 Income from Operations (before non-recurring expenses): USD 163.2 million, 69.1% higher than USD 96.5 million in Q3 2019. Results in local currencies were better in all areas, except in Latin America where results were lower.

Other income/expenses: USD 88.5 million negative compared with USD 13.9 million negative in Q3 2019. Hunter Douglas is restructuring its operations to an expected lower level of sales. The 2020 charges are USD 85 million for adjustments to the future purchase prices of interests in partially owned companies and USD 3.5 million for reorganization expenses mainly in North America and Europe.

Q3 Profit before Tax: USD 74.0 million, 6.0% lower than USD 78.7 million in Q3 2019.

Q3 Total Net Profit: USD 37.9 million (per share EUR 0.95), compared with USD 63.9 million in Q3 2019 (per share EUR 1.67).

First nine months 2020 by Region

Europe

European sales were USD 1,008 million, 6% lower than USD 1,078 million in the same period last year. This reflects a 3% volume decrease, a 3% increase from acquisitions and a 6% decrease from divestments.

North America

North American sales decreased by 12% to USD 1,242 million. The sales decrease reflects lower volume.

Latin America

Latin American sales were USD 72 million, 35% lower than USD 110 million in the same period last year. The sales decrease reflects a 18% volume decrease and a 17% negative currency impact.

Asia

Asian sales decreased by 18% to USD 78 million. The lower sales reflect a volume decrease of 17% and a 1% negative currency impact.

Australia

Australian sales were USD 91 million, 1% higher than USD 90 million in the same period last year. The sales increase reflects a 1% volume increase, a 3% negative currency impact and a 3% increase from acquisitions.

Outlook

Considering the continuing COVID-19 crisis the outlook remains uncertain.

Hunter Douglas is in a strong position in terms of its brands, products, distribution and finances.

For the full third quarter results, click here.

About Hunter Douglas

Hunter Douglas has its Head Office in Rotterdam, the Netherlands, and a Management Office in Lucerne, Switzerland. The Group is comprised of 134 companies with 47 manufacturing and 87 assembly operations in more than 100 countries. Hunter Douglas employs about 25,000 people and had sales in 2018 of USD 3.6 billion. The common shares of Hunter Douglas N.V. are traded on Amsterdam’s Euronext and the Frankfurter Börse.

Contact:

Leen Reijtenbagh – Chief Financial Officer – l.reijtenbagh@hdnv.nl – +31 10 486 9582

Source: Hunter Douglas N.V.