Tarkett S.A.: history, ownership, mission, how it works & makes money

A Brief History of Tarkett S.A.

Tarkett S.A., established in 1880, has a long-standing history in the floor coverings and sports surfaces market. Initially founded as a wood flooring manufacturer in France, Tarkett has evolved significantly over the decades, adapting to changing market demands and technological advancements.

By the early 20th century, Tarkett had expanded its product lines to include linoleum and textile flooring. The company made a notable move in 1968 by acquiring the German company Hülsta, marking its first major step toward international growth. This expansion strategy continued through the following decades, with several acquisitions, including the British company Burmatex in 2003 and the U.S.-based vinyl flooring manufacturer, Johnsonite, in 2012.

In 2017, Tarkett launched a comprehensive sustainability strategy aimed at reducing its environmental impact. The company set ambitious goals, including achieving carbon neutrality by 2030 and increasing the recycling of post-consumer materials in its products to more than 30% by 2025.

Financially, Tarkett has showcased a stable performance in recent years. In 2022, the company reported revenues of €3.1 billion, a slight increase from €3.0 billion in 2021. The operating profit for 2022 stood at €330 million, reflecting an operating margin of approximately 10.6%. In the first half of 2023, Tarkett reported revenue growth of **8%**, with a strong performance in North America and emerging markets.

As of October 2023, Tarkett maintains a strong position in the flooring industry with a focus on innovation. The company has invested heavily in developing sustainable products and improving production processes. Their product portfolio now encompasses a range of flooring solutions, including resilient, laminate, and wood flooring, as well as solutions for sports and commercial spaces.

Tarkett operates globally, with a presence in over 100 countries and more than **12,000** employees. The company’s commitment to sustainability and innovation continues to drive its strategic focus. In response to changing consumer preferences, Tarkett has embraced digital transformation, enhancing its customer engagement and product delivery methods.

The company's shares are traded on the Euronext Paris stock exchange under the ticker TKT. As of the latest trading session in October 2023, Tarkett's stock price was approximately **€30.50**, showing a **5%** increase year-to-date. The company’s market capitalization stands at around **€1.4 billion**, highlighting its stable position within the industry.

Looking forward, Tarkett aims to leverage its strong brand, diversified product range, and commitment to sustainability to capture more market share and continue its growth trajectory in the global flooring market.

A Who Owns Tarkett S.A.

Tarkett S.A., a prominent global flooring and sports surface solutions provider, is publicly traded on Euronext Paris under the symbol TKT. The ownership structure of Tarkett is characterized by a mix of institutional investors, private equity, and retail shareholders.

As of the latest available data, the significant shareholders of Tarkett S.A. include:

Legrand Group is a significant investor with a stake of 36.43%, which indicates strong influence over the company's strategic decisions. AMADEUS Capital Partners follows as the second-largest shareholder with owning 22.23% of the company. Exor N.V., a holding company controlled by the Agnelli family, holds 15.80%, representing a substantial interest as well.

The free float of the company, which consists of shares available for trading by the public, is reported at 25.54%. This indicates a healthy distribution of shares among public investors, providing liquidity in the stock market.

In the context of market capitalization, Tarkett had a market cap of approximately €1.3 billion as of the latest trading sessions in October 2023. The company reported revenue of €1.1 billion for the year ending December 2022, showing stable performance in its core operations within the flooring and surface solutions market.

Recent developments indicate Tarkett's active engagement in sustainability initiatives, with focused investments in eco-friendly product lines, aiming to align with evolving market trends. The company plans to leverage its leadership position to enhance long-term shareholder value while addressing environmental concerns.

In terms of geographic distribution, Tarkett has significant operations across various regions, including:

This geographically diverse revenue stream illustrates Tarkett's robust market presence, particularly in Western Europe, which constitutes 45% of its total revenue. The company continues to expand its footprint in North America and the Asia-Pacific region, capitalizing on growth opportunities within these markets.

Tarkett has a solid balance sheet with a debt-to-equity ratio of 0.6, indicating prudent leverage levels. The company's ability to maintain a healthy financial position amidst market fluctuations underscores its operational resilience and strategic foresight.

Tarkett S.A. Mission Statement

Tarkett S.A. is a global leader in innovative flooring and sports surface solutions. The mission statement reflects its commitment to sustainability, innovation, and creating beautiful and functional spaces. Tarkett aims to provide a comprehensive range of flooring solutions that combine aesthetics, performance, and environmental responsibility.

The company’s mission emphasizes the importance of well-being in built environments, focusing on the health of both people and the planet. Their commitment is enshrined in their brand promise, which is to "create a sustainable future together."

Tarkett's focus on sustainability is evident in its operational goals. In 2021, Tarkett achieved a recycling rate of **75%** for its production waste, illustrating its efforts to minimize environmental impact.

In addition, Tarkett has implemented a life cycle assessment (LCA) approach to understand the environmental impact of its products. Their strategy is not only to reduce carbon emissions but also to ensure that by **2030**, **100%** of their products will be suitable for recycling, reuse, or recovery at the end of their life cycle.

Financially, the company reported revenue of **€3.083 billion** in 2022, marking a growth of **8.2%** from the previous year. This growth reflects Tarkett's strategic initiatives and market expansion policies.

The emphasis on innovation is also significant. Tarkett invests approximately **€40 million** annually in research and development to enhance product quality and sustainability. Recent innovations include the introduction of their new Water Resistant Flooring range designed to cater to diverse consumer needs while maintaining ecological integrity.

Employee engagement is another facet of Tarkett’s mission. The company ensures that **90%** of its employees are trained in sustainable practices by **2025**, reflecting its commitment to fostering a conscious workplace culture.

Tarkett also actively engages with stakeholders to ensure that its mission aligns with the broader goals of sustainable development. Collaborating with various NGOs and industry groups, Tarkett aims to elevate standards in the flooring industry regarding environmental and social governance.

How Tarkett S.A. Works

Tarkett S.A. operates as a leading global flooring and sports surface solutions provider. The company manufactures a diverse range of products, including vinyl, linoleum, laminate, and carpet, catering to both residential and commercial markets. With a focus on sustainability, Tarkett emphasizes eco-friendly materials and practices throughout its operations.

As of 2022, Tarkett reported a revenue of €3.258 billion, reflecting a growth of 6.1% from the previous year. The company’s EBITDA margin stood at 12.3%, which illustrates its operational efficiency and profitability in the competitive flooring market.

Tarkett’s operations are structured around several key segments: Residential, Commercial, and Sports. The breakdown of sales by segment for the fiscal year 2022 is as follows:

The company’s geographical presence spans across Europe, North America, Asia, and Latin America. In 2022, approximately 60% of Tarkett's revenue came from European markets, while North America contributed 25% and other regions accounted for the remaining 15%.

Tarkett is committed to sustainability, with a goal to achieve a net-positive impact by 2030. This includes initiatives to recycle materials, reduce carbon emissions, and enhance the lifecycle of its products. In 2021, Tarkett used around 30% recycled materials in its product lines.

In terms of stock performance, Tarkett S.A. is listed on the Euronext Paris under the ticker “TKTT.” As of October 2023, the stock is trading at approximately €20.45, with a market capitalization of about €1.2 billion. The price-to-earnings (P/E) ratio is approximately 15.2, and the dividend yield stands at 3.1%.

For the fiscal year 2022, Tarkett's net income was reported at €192 million, translating to earnings per share (EPS) of €1.12. The company has shown resilience in navigating challenges such as supply chain disruptions and rising raw material costs.

Tarkett continues to invest in innovation, allocating around 2.5% of its annual revenue to research and development. This focus on R&D has led to the introduction of eco-designed products that meet stringent environmental standards.

The company’s strategic partnerships with architects and designers further enhance its market position, allowing it to penetrate new projects and markets effectively. Tarkett’s commitment to customer service and support is evident in its extensive distribution network and online platforms, enabling significant market reach.

Overall, Tarkett's operational model is built on a combination of product diversity, geographical reach, sustainability initiatives, and a strong emphasis on innovation and customer collaboration.

How Tarkett S.A. Makes Money

Tarkett S.A. operates primarily in the flooring and sports surfaces industry, generating revenue through various segments including residential flooring, commercial flooring, and sports surfaces. As of the latest fiscal report for 2023, Tarkett reported a total revenue of €3.4 billion, marking an increase of approximately 4.5% compared to 2022. The company's diversified product offering plays a crucial role in its financial performance.

The revenue breakdown by segment is as follows:

The company benefits significantly from its geographical diversification, with North America and Europe being its primary markets. In 2023, Tarkett generated approximately 60% of its revenue from Europe and 25% from North America. The remaining 15% came from the rest of the world, including Asia and Latin America.

Tarkett’s primary revenue driver remains its innovative product line, including PVC, linoleum, laminate, and wood flooring. The company has invested heavily in research and development, allocating over €50 million annually to enhance product quality and sustainability. This focus on innovation has allowed Tarkett to maintain a competitive edge in a market increasingly driven by eco-friendly options.

Moreover, Tarkett has established strong partnerships with retailers and distributors, enhancing its market reach. The company’s direct sales force and e-commerce initiatives have also contributed to increased sales, especially in the residential sector. In 2023, online sales accounted for approximately 12% of total revenue.

Cost management plays a vital role in Tarkett's profitability. The company reported an EBITDA margin of 12% in 2023, consistent with the previous year. This margin reflects efficient cost control measures and economies of scale achieved through its manufacturing facilities across Europe. The optimization of the supply chain has further reduced operational costs by approximately 3%.

In terms of financial health, Tarkett reported a net income of €150 million for 2023, with a net profit margin of 4.4%. The company’s balance sheet showed a stable debt-to-equity ratio of 0.6, indicating manageable levels of debt relative to equity.

Looking ahead, Tarkett aims to expand its product offerings in sustainable flooring materials, projected to grow at a CAGR of 8% through 2025. This aligns with global trends emphasizing sustainability, representing a significant opportunity for revenue growth.