Fluidra triples its net profit to 221 million euros in the first nine months of 2021October 28, 2021
Sales up 49% to 1,704 million euros and EBITDA increased by 82% to 451 million euros.
The company upgrades its 2021 sales growth guidance to a range between 40% and 45%, and maintains its EBITDA margin guidance between 25.0% and 25.5%.
Management is confident about delivering a solid Q4 despite supply chain challenges and an inflationary environment.
Fluidra, global leader in pool and wellness equipment and connected solutions, closed the third quarter of the year continuing the strong growth experienced throughout 2021.
From January to September 2021, the company has reached 1,704 million euros in sales, up 49% on the first nine months of 2020. In Q3 Fluidra has reached 517 million euros in sales, up 39.1% from the same quarter of 2020, and 67% from the same quarter of 2019, demonstrating the strong and solid demand in the market.
EBITDA for the first nine months of 2021 is up 82% to 451 million euros benefitting from significant operational leverage despite supply chain challenges and inflationary environment in commodities and transportation costs. Net Profit has reached 221 million euros, nearly three times the profits registered in 2020, while Cash Net Profit was up 130% to 285 million euros.
Cash generation throughout 2021 has continued to be very strong and has allowed Fluidra to remain very active in M&A, to increase its dividend, and still reduce its leverage ratio to 1.8x LTM EBITDA. In the first nine months of 2021, the company has acquired US manufacturers BuiltRight, CMP and S.R. Smith, and European business Splash&Zen.
Excellent growth in all regions
Sales continued its strong momentum across all regions, with accelerated growth through the third quarter. North America remains as the main growth engine with a 91% growth in sales in the first nine months of 2021 compared to 2020, Southern Europe is up by 32%, Rest of Europe is up by 36% and the Rest of the World is up by 26%.
In terms of business units, Residential Pool experienced the strongest growth, with sales up 57% from January to September, backed by demographic macrotrends and acquisitions. Commercial Pool recovered well in the third quarter, with 22% growth in sales year to date, led by Aftermarket. The Pool Water Treatment business was up 27% and Fluid Handling rose by 37%.
Outlook and 2021 guidance
Fluidra is raising the sales growth guidance for 2021. Fluidra now expects sales growth of 40% to 45% year-over-year compared to its previous range of 37% to 42% provided at the announcement of S.R. Smith. Fluidra confirms its guidance for EBITDA margin at between 25.0% and 25.5%, and Cash EPS growth of between 83% and 93%.
Eloi Planes, the company’s Executive Chairman, says: “This is a very strong finish to the 2021 Northern Hemisphere Pool season and a confirmation of the step change in the industry. Fundamentals of the business remain robust and momentum continues with strong demand for New Builds, Commercial Pool recovery and M&A. We are again upgrading our sales growth guidance for this extraordinary 2021 year, and preparing ourselves for a solid start of 2022”.