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Tarkett posts lower revenues from three divisions

22.05.2018 − 

Tarkett ended the first quarter with a 7.2% slump in revenues to €567.9m because of unfavourable currency effects. On an organic basis, the group’s turnover was roughly the same as last year. Adjusted EBITDA plunged 42% to €29.8m; the adjusted EBITDA margin was trimmed to 5.2 %. Tarkett blamed currency effects, higher raw material costs and lower sales in the EMEA and North America regions for its downturn in earnings. These and other factors more than erased the positive contributions to earnings from higher sales prices and better productivity on the whole.

Three of the four divisions played a part in this downturn in revenues. Tarkett’s Europe, Middle East and Africa (EMEA) region generated total revenues of €228.3m, a 6.2% decline. Revenues were down 4.6% on an organic basis.

Revenues in the North America division fell 14.1% to €163.5m. The weaker US dollar against the euro was primarily responsible here. On an organic basis, a 1.6% downturn was registered. The CIS, APAC, Latin America division posted a 4.1% slump in revenues to €116.3m; however, Tarkett did deliver an organic growth of 5.0% here. Brazil and China were singled out as growth markets, but the CIS region also saw some growth in sales. By contrast, Australia and South-East Asia started off the first quarter in subdued form.

The Sports division was the only one to book a growth in the reporting period, improving 5.4% to €59.8m; the organic growth rate was as high as 15.9%.

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