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• Revenue: $14.6 billion, with organic growth of 6.5% or 6.8% in local currencies.

• Net Profit: $1.12 billion, an increase of 14.9%, with net profit margin improved to 7.7%.

• Free Cash Flow: $1.6 billion, 23% higher than the previous year.

• Gross Profit: Increased by $476 million to $5.9 billion, with margin increased by 85 basis points to 40.3%.

• Earnings Per Share: Increased by 15.1% to USD0.6143 per share.

• Dividend: Final dividend of HKD1.18 per share, a 20.4% increase, with total dividend for 2024 at HKD2.26 per share, an increase of 17.1% over 2023.

• Power Equipment Division Revenue: Grew by 7.3% to $13.7 billion, with operating profits increased by 12.1%.

• Floor Care and Cleaning Division Revenue: Down 4.5% in local currency, with operating profits increased by 4.73%.

• North America Revenue Growth: 5.5% in local currencies, accounting for 76% of total revenue.

• Europe Revenue Growth: Over 10% in local currencies, accounting for 16% of total revenue.

• Rest of the World Revenue Growth: 12.5% in local currencies, led by Australia.

• SG&A as a Percentage of Sales: 31.7%, an increase of 40 basis points.

• Net Finance Costs: Reduced by 32% or over $25 million.

• Effective Tax Rate: 7.8%, 30 basis points higher than the previous year.

• Shareholders' Equity: $6.4 billion, an increase of 10.7%.

• Inventory Days: Improved by 7 days to 102 days.

• Trade Receivables: 47 days, two days higher than 2023.

• CapEx: $292 million, 42% lower than 2023.

• Gearing: Improved to 0.7% from 17.1% in 2023.

• Total Net Debts: Reduced by over 95% to $45 million at year end.

• Warning! GuruFocus has detected 3 Warning Sign with TTNDF.

Release Date: March 05, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Techtronic Industries Co Ltd (TTNDF) reported a 6.5% increase in revenue and a 14.9% rise in net profit for 2024, showcasing strong financial performance.

• The company generated $1.6 billion in free cash flow, representing a 23% increase from the previous year, highlighting effective cash management.

• MILWAUKEE brand achieved a sales growth of 11.6% in local currencies, reinforcing its dominant market position.

• The company's gross profit margin improved by 85 basis points to 40.3%, driven by a higher mix of margin-accretive products and efficient procurement strategies.

• Techtronic Industries Co Ltd (TTNDF) has a strong balance sheet with shareholders' equity increasing by 10.7% to $6.4 billion, providing financial stability and flexibility for future investments.

Negative Points

• The Floor Care and Cleaning division experienced a 4.5% decline in revenue in local currency, indicating challenges in this segment.

• Despite strong overall performance, the company set a conservative revenue growth target of mid- to high single digits for 2025, which may concern some investors.

• The effective tax rate increased by 30 basis points to 7.8%, which could impact net profit margins if it continues to rise.

• Trade receivables days increased by two days to 47 days, potentially indicating slower collections or higher sales in the latter part of the year.

• The company faces potential risks from tariffs, particularly if new tariffs are imposed on products manufactured in Vietnam, which could affect cost structures.