Hunter Douglas Finance B.V.

Overview Key strengths Key risks Strong position as the No. 1 global player in the global hard treatment window coverings market. Demand driven by cyclical housing trends, and the company is exposed to consumer discretionary spending trends. Geographically diversified business with approximately 50% of revenue generated in North America and 40% in Europe. Narrow product focus exclusively in the sale of window coverings and manufactured components. Good liquidity with high cash balance, minimal revolver use, and consistent cash flow generation. High leverage in the low-6x area as of the last 12 months (LTM) ended Sept. 30, 2023. Hunter Douglas Finance B.V.?s revenue has exhibited low-single-digit percent declines each quarter in 2023, stemming from inflationary pressures and weaker consumer discretionary spending

...We believe ongoing headwinds to consumer discretionary spending will result in continued weaker overall organic demand for window coverings products through at least the first half of 2024. Hunter Douglas Finance B.V.'s revenue has exhibited low-single-digit percent declines each quarter in 2023, stemming from inflationary pressures and weaker consumer discretionary spending that has remained persistent throughout the year. The company's North American and European residential segments have been particularly vulnerable to this demand softness, resulting in volume declines in both regions. However, the reported decline is offset by revenue from acquired businesses during the year. Together, this dynamic has translated to an approximately 2% revenue decline as of the LTM ended Sept. 30, 2023, and we expect these demand headwinds will continue into at least the first half of 2024 as the macroeconomic landscape remains uncertain and continues to pressure both housing trends and consumer discretionary...

Full Report