Hunter Douglas Results 2020

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

Sales:

3.9% lower to USD 3,543.0 million, compared with USD 3,686.3 million in 2019.

The 3.9% sales decrease reflects a 4.6% volume decrease, 0.4% negative currency impact, 2.8% increase from acquisitions and 1.7% decrease from divestments. Volume decreased in all areas, except in Australia where sales were higher.

North America accounted for 51% of sales, Europe 39%, Latin America 3%, Asia 3% and Australia 4%. Window coverings were 92% of sales and Architectural products 8%.

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

USD 530.7 million, 5.4% higher than USD 503.4 million in 2019.

Income from Operations (before other income/expenses):

11.2% higher to USD 377.5 million, compared with USD 339.6 million in 2019. Results in local currencies were higher in all areas, except in Latin America and Asia where results were lower.

Other income/expenses:

USD 189.4 million negative, compared with USD 4.5 million positive in 2019. USD 65.2 million of the 2020 charges comprises reorganization expenses, mainly in North America and Europe, to reduce ongoing costs and realign operations to changed market conditions. USD 130.5 million relates to adjustments to the liability of the future purchase prices of minority interests in partially owned companies in accordance with IFRS 9, and USD 6.3 million to badwill on an acquired company. Most of the purchase price adjustment resulted from the strong performance of Blinds2go, the company’s UK internet business, which was subsequently fully acquired in Q1 2021 for the corresponding liability.

Profit before Tax:

USD 188.9 million, compared with USD 330.4 million in 2019.

Total Net Profit:

USD 116.1 million (per share EUR 2.92), compared with USD 277.6 million in 2019 (per share EUR 7.12).

Capital expenditures were USD 74 million, compared with USD 125 million in 2019, while depreciation was USD 124 million, compared with USD 141 million in 2019. In 2021 capital expenditures will be about USD 70 million and depreciation USD 120 million.

Operating cash flow: USD 532 million, compared with USD 546 million in 2019. Shareholders’ equity was USD 1,925 million, compared with USD 1,798 million at the end of 2019, reflecting the 2020 results and increased by a positive exchange translation.

Financing: All borrowings are covered by committed long term facilities.

RONAE (Return before interest on Net Assets Employed) before other income/expenses: 14.9% compared with 13.4% in 2019.

Return on Equity: 6.2% compared with 16.8% in 2019.

Employees: The company had approximately 23,000 employees at the end of 2020.

Dividend: The Board of Directors proposes no dividend on the results of 2020.

Q4 2020

Q4 Sales were USD 1,052.3 million, 15.8% higher than USD 908.4 million in the same period of 2019. This reflects a 6.8% volume increase, a 1.3% positive currency impact, a 7.8% increase from acquisitions and 0.1% decrease from divestments. Fourth quarter organic sales were higher in all areas, except in Asia where sales were level.

Q4 Earnings before interest, tax, depreciation and amortization – EBITDA: USD 162.6 million, 11.7% higher than USD 145.6 million in Q4 2019.

Q4 Income from Operations (before other income/expenses): USD 125.4 million, compared with USD 81.1 million in Q4 2019. Results in local currencies were higher in all areas.

Q4 Other income/expenses: USD 56.4 million negative, compared with USD 13.2 million positive last year. USD 17.2 million of the Q4 2020 charges comprises reorganization expenses, mainly in North America and Europe, to reduce ongoing costs and realign operations to changed market conditions. USD 45.5 million relates to adjustments to the liability of the future purchase prices of minority interests in partially owned companies in accordance with IFRS 9, and USD 6.3 million to badwill on an acquired company. Most of the purchase price adjustment resulted from the strong performance of Blinds2go, the company’s UK internet business, which was subsequently fully acquired in Q1 2021 for the corresponding liability.

Q4 Profit before Tax: USD 75.6 million, compared with USD 90.6 million in Q4 2019.

Q4 Total Net Profit: USD 49.7 million (per share EUR 1.23), compared with USD 88.6 million in Q4 2019 (per share EUR 2.28).

Total year 2020 by Region

Europe

European operations had lower sales and higher profits.

European sales were USD 1,381 million, 2% lower than USD 1,414 million last year. This reflects a 1% volume decrease, a 1% positive currency impact, a 2% increase from acquisitions and a 4% decrease from divestments.

North America

North American operations had lower sales and profits.

Sales decreased by 3% to USD 1,804 million. The sales decrease reflects a 7% decrease in volume and a 4% increase from acquisitions.

Latin America

Latin American operations had lower sales and profits.

Sales were USD 106 million, 28% lower than last year. This reflects a 13% volume decrease and a 15% negative currency impact.

Asia

Asian operations had lower sales and profits.

Sales were USD 119 million, 13% lower than USD 136 million last year, due to a 12% decrease in volume and a 1% negative currency impact.

Australia

Australian operations had record sales and profits.

Sales were USD 133 million, 4% higher than USD 128 million last year, due to 2% volume increase and a 2% increase from acquisitions.

Outlook

Remains dependent on the further development of the COVID-19 pandemic; though once this has been controlled, is cautiously optimistic.

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

For the full fourth quarter results, click here.

About Hunter Douglas

Hunter Douglas is the world market leader in window coverings and a major manufacturer of architectural products. The Company 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. 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.