2019-09-03 09:47Financial Performance - For the six months ended June 30, 2019, the company's revenue reached $3.7 billion, representing a 10.7% increase in local currency[8] - Net profit attributable to shareholders rose by 11.9% to $285 million, with earnings per share increasing by 12.4% to approximately 15.61 cents[12] - The company's total revenue for the reporting period was $3.728 billion, an increase of 8.7% compared to the same period last year[29] - Net profit attributable to shareholders was $285 million, reflecting an 11.9% growth from $255 million in the previous year[29] - The company reported a net profit of $285,063,000 for the six months ended June 30, 2019, compared to $254,776,000 for the same period in 2018, reflecting an increase of about 11.9%[69] - The company reported a significant increase in revenue, reaching $1.2 billion, representing a 15% year-over-year growth[124] Revenue Growth - The flagship Milwaukee tool business continued to grow, with a global increase exceeding 20% in local currency[21] - The electric tools segment achieved a revenue of $3.3 billion, reflecting a 14.3% growth in local currency[24] - The European market showed significant growth, increasing by 14.2% in local currency, with Milwaukee tools growing over 25% in that region[22] - New product launches and market expansion contributed to strong performance, with overall revenue growth of 8.7%[22] - The North American business recorded a notable increase of 9.7%, with Milwaukee tools in the U.S. growing over 20% and Canadian operations increasing by over 28%[22] - Milwaukee Tools' global business grew by 22.2% in local currency during the first half of 2019, significantly outperforming the global market[25] - North America revenue for the six months ended June 30, 2019, was $2,845,008,000, an increase of 9.5% from $2,599,475,000 in 2018[72] Profitability Metrics - Gross profit margin increased for the eleventh consecutive half-year, rising by 50 basis points to 37.6%[12] - Gross margin increased to 37.6%, up from 37.1% in the same period last year, due to new product launches and effective supply chain management[30] - Basic earnings per share increased to 15.61 cents from 13.89 cents, indicating strong earnings growth[40] Operational Efficiency - The company maintained strict management of working capital, which accounted for 18.4% of sales[21] - Total operating expenses were $1.093 billion, accounting for 29.3% of revenue, slightly up from 29.0% in the previous year[32] - The operating working capital as a percentage of sales increased to 18.4% from 17.0% in the previous year[37] - The company aims to improve operational efficiency, targeting a 5% reduction in costs by the end of the fiscal year[124] Cash Flow and Financial Position - The group maintained a strong financial position with cash and cash equivalents totaling $1,206,000,000 as of June 30, 2019, up from $1,104,000,000 on December 31, 2018[34] - The total cash and cash equivalents at the end of the period increased to $1,205,564,000, compared to $863,127,000 at the end of June 30, 2018, reflecting a year-over-year increase of 39.6%[45] - The company has maintained a strong cash position with bank balances and cash totaling $1,205,564 thousand, up from $1,103,880 thousand[41] Capital Expenditures and Investments - Capital expenditures for the period reached $211,000,000, with an additional $42,000,000 allocated for the headquarters in the United States, compared to $86,000,000 in 2018[37] - The company acquired property, plant, and equipment totaling approximately $253,000,000 during the period, significantly higher than $86,000,000 in the same period of 2018[77] Shareholder Returns - The interim dividend declared was HKD 0.45 per share (approximately USD 0.0579), compared to HKD 0.38 per share (approximately USD 0.0489) in the previous year[37] - The company declared dividends amounting to $117,621,000 in 2019, compared to $93,827,000 in 2018, reflecting a 25.4% increase in dividend payouts[45] - The company has a commitment to distribute dividends consistently, with a planned distribution of HKD 51,080 on 20 May 2020[95] Strategic Focus and Future Outlook - The company plans to continue focusing on new product development and expanding its global production network to enhance productivity and mitigate adverse impacts, including tariffs[28] - The company provided a positive outlook for the next quarter, projecting a revenue growth of 10%[124] - New product launches are expected to contribute an additional $200 million in revenue over the next fiscal year[124] - Market expansion plans include entering three new international markets by Q3 2024[124] - The company is considering strategic acquisitions to enhance its product portfolio and market presence[124] Corporate Governance and Compliance - The company confirmed compliance with the Corporate Governance Code throughout the reporting period, enhancing overall governance standards[117] - The board of directors has adopted the Standard Code for securities transactions, ensuring all directors complied with relevant guidelines during the reporting period[118] - The financial information disclosed in the report complies with the requirements of the listing rules[119] Employee and Workforce Management - Employee costs totaled $625,000,000, up from $514,000,000 in the same period last year, with a workforce of 29,536 employees compared to 26,110 a year earlier[37] Market and Product Development - The company is strategically focusing on developing cordless technology and carpet cleaning tools in its floor care business, which is showing continuous improvement[22] - The Milwaukee FUEL cordless product line saw over 24% growth in the first half of the year, driven by the launch of several key new products[25] - Ryobi's outdoor gardening business achieved a 15.9% increase in sales, with revolutionary cordless outdoor gardening tools leading the performance[26]