Techtronic Industries' profit grew 15 pc to US$1.12b

Techtronic Industries Company (0669) said its net profit increased by 15 percent year-on-year to US$1.12 billion (HK$8.74 billion) last year, as new innovative power tools drove up the gross margin. 

The Hong Kong-based power tools maker also declared a final dividend of HK$1.18, up by 20 percent from one year ago.

TTI said it delivered record sales of US$14.6 billion last year, rising 6.8 percent in local currency and 6.5 percent at reported rates.

The flagship MILWAUKEE posted sales growth of 11.6 percent in local currency, and RYOBI, No.1 consumer battery-powered tool and outdoor brand globally, recorded a 6.4 increase in sales in local currency

By regions, businesses in North America grew 5.5 percent, 10.2 percent in Europe and 12.5 percent in the rest of the world including Australia and Asia.

Gross margin increased by 85 basis points to 40.3 percent last year, mainly thanks to a higher mix of MILWAUKEE branded business, aftermarket battery sales, and highly innovative margin accretive new products across its core verticals.

Additionally, TTI sees the rapid advancement of generative artificial intelligence has created a need for the construction of new data centers, which its MILWAUKEE brand could support.

TTI  delivered US$1.59 billion of free cash flow in 2024, thanks to the improvements in net profit and working capital.