2020-09-02 08:34Financial Performance - The company reported a sales increase of 12.8% to $4.206 billion for the first half of 2020, with a local currency growth of 14.0%[13] - Gross margin improved by 40 basis points to 38.0%, while EBIT increased by 15.6% to $363 million[11] - Net profit rose by 16.3% to $332 million, and basic earnings per share increased by 16.2% to approximately 18.14 cents[11] - The interim dividend per share was raised by 17.8% to approximately 6.82 cents[11] - North America showed significant growth of 14.5%, while Europe recorded an 8.2% increase despite challenges from COVID-19[14] - Overall sales in Australia, New Zealand, and Asia grew by 21.0%, indicating strong market performance[14] - The company reported a net profit attributable to shareholders of $332 million, a 16.3% increase from the previous year, with basic earnings per share rising to 18.14 cents[36] - The total revenue for the six months ended June 30, 2020, was $4,205,697, an increase of 12.8% compared to $3,728,247 for the same period in 2019[67] - The net profit for the six months ended June 30, 2020, was $331,643, compared to $285,063 for the same period in 2019, reflecting a growth of 16.3%[70] Sales and Market Growth - The electric tools segment achieved a sales growth of 14.0%, exceeding $3.7 billion, with strong performance across all areas[17] - The Milwaukee professional business grew by 13.3%, benefiting from the launch of innovative products including the MX FUEL equipment system and new M18 and M12 cordless products[18] - The RYOBI outdoor gardening tools business recorded double-digit growth in the first half of the year, driven by the 40V rechargeable product platform[26] - The global floor care business grew by 13.6% in local currency, with sales exceeding $458 million, benefiting from the ONEPWR rechargeable system and new carpet cleaning products[31] - The revenue from power tools was $3,747,549, representing a 12.8% increase from $3,321,761 in the previous year[63][64] - The revenue from floor care and accessories was $458,234, up from $406,598, marking a 12.7% increase[63][64] Operational Efficiency - The company successfully enhanced its e-commerce platform and implemented safety measures to ensure operational continuity during the pandemic[13] - The gross profit margin increased to 38.0%, up from 37.6% in the previous year, due to new product launches and effective supply chain management[36] - Operating working capital as a percentage of sales decreased to 15.8% from 18.4% year-over-year[40] - Total inventory increased to $2,327 million from $1,961 million year-over-year, with inventory turnover days rising from 94 to 102 days[40] - Accounts receivable turnover days increased to 65 days from 63 days year-over-year, while excluding non-recourse receivables, it was 62 days compared to 61 days last year[40] Financial Position - The net debt ratio improved from 13.1% to 4.0%, indicating a strong financial position with cash and cash equivalents totaling $1.715 billion[37] - Long-term borrowings accounted for 50.1% of total debt, with the company maintaining low currency risk due to natural hedging from its revenue being primarily in USD[39] - Cash and cash equivalents reached $1,714,884 thousand, compared to $1,411,821 thousand, marking a significant increase of 21.5%[50] - Current liabilities grew to $3,806,886 thousand, up from $3,217,707 thousand, representing an increase of 18.3%[50] - The company reported a profit attributable to shareholders of $331.573 million for the six months ended June 30, 2020, compared to $329.896 million for the same period in 2019, indicating a slight increase of 0.5%[52] Capital Expenditures and Investments - Capital expenditures totaled $117 million, down from $253 million in the previous year[42] - Capital commitments for property, plant, and equipment amounted to $60 million, up from $34 million in the previous year[43] - The company invested approximately $117,000,000 in property, plant, and equipment during the period, a decrease from $253,000,000 in the same period last year[73] Employee and Shareholder Information - Employee costs rose to $668 million from $625 million year-over-year, with total employees increasing to 34,082 from 29,536[44] - The company declared an interim dividend of $124,905,000, which is an increase from $105,870,000 in the previous year[71] - The company repurchased shares worth $12.644 million during the period, contributing to the overall equity adjustments[52] Stock Options and Incentive Plans - The company has a structured approach to stock options, with specific vesting schedules and performance criteria outlined for its executives[89] - The total amount granted to directors is HKD 10,239,000, with a total of 9,787,500 options unexercised at the beginning of the period[90] - The total options exercised during the period amounted to 1,143,500[91] - The total number of shares granted under the 2008 and 2018 share incentive plans amounted to 6,582,500 shares, with 1,323,000 shares granted during the reporting period[101] Corporate Governance - The company has complied with all provisions of the Corporate Governance Code during the six-month period ending June 30, 2020[110] - The company has adopted the Standard Code for securities trading by directors, ensuring compliance during the six-month period ending June 30, 2020[111]