TTI Group Reveals 2023 Year Financials
In its recent financial performance reporting on the full year of 2023, TTI Group, the parent company of Milwaukee Tools, Ryobi, Hart and others, reported a substantial increase in revenue and gross profits. The company reported sales for its Milwaukee Tool brand rose by 10.7%. Despite the growth, the company experienced a decline in EBIT (earnings before interest and taxes) and net profit due to the contraction of the consumer business and increased promotional activities.
Besides mentioning Milwaukee specifically, the TTI reporting had much less to say about other brands such as Ryobi, a Home Depot product, or Hart Tools, a Walmart exclusive brand. It did say, “Our Consumer group of businesses also delivered positive sales growth in the second half and are well positioned to continue gaining traction in 2024. Our Floorcare and Cleaning business delivered sales growth in 2023 of 1.5% in local currency to US $937 million and profit increased US $65.3 million versus last year to US $27.2 million.”
The TTI board recommended an increased final dividend, reflecting confidence in the company’s financial health. TTI Group said it plans to focus on improving free cash flow, gearing, and reducing high-cost debt in 2024, projecting mid-single digit revenue growth and a faster increase in gross margin than SG&A.
TTI Revenue (millions)
- 2023, $13,731
- 2022, $13,254
- Change of +3.6%
Executive Statements
Horst Pudwill, chairman of TTI, said, “TTI is poised for continued market outperformance in 2024. We are relentlessly focused on developing innovative cordless products with advanced electronics, cutting-edge motor technology, and artificial intelligence. With a healthy balance sheet, solid cash position, and strong growth outlook, we look forward to 2024 with confidence.”
TTI Group’s revenue has almost doubled since 2018, with gross profits up by 4% to USD 5.4 billion. The company said it maintains a commanding position in the cordless market and is aligned with their largest customer, Home Depot. Milwaukee is focused on expanding its cordless systems and introducing new technologies, including AI and machine learning, to enhance productivity and safety. The company expect Milwaukee to see double-digit growth with expansion potential in North America, Europe, and globally.
“Our exceptional results over the past 15 years have consistently surpassed overall market performance, said Joseph Galli, TTI CEO. “2024 will be no exception, as we are poised to outperform the market yet again. Our strength in cordless innovation, new product development, operational excellence, and in-field marketing initiatives are unparalleled in the industry and give TTI an unassailable competitive advantage.”
Big-Box Future
Galli continued, from the transcript of the earnings report, to discuss power equipment and the legislative environment specifically, “and we’re actually getting help from many countries, municipalities, et cetera. For example, this year, the Governor of Colorado instituted a 30% rebate. So if you go in Home Depot in Colorado and buy a battery-powered Milwaukee mower, you get 30% back from the government. So guess, why at Home Depot — we put this program we got with Home Depot, their sales are skyrocketing in the state of Colorado. And one thing I learned about governors is they like to sort of keep up with each other. So I think you’re going to see a lot of this as we go forward. So look, our commanding unassailable leadership position in cordless is not to be underestimated. And when you ask me about the interest rates, who’s going to win the election, geopolitical arena? I mean, these things — first of all, I can’t predict any of this. Secondly, does it really matter, because there is so much untapped potential for us, as you’ll see with Milwaukee today and with the rest of the company. There is so much more potential. I think we can deliver the next 5 years, exceptional financial results. So the great news is that our strategy is 100% aligned with our largest customer.”
