Gates Industrial Corporation plc · Q1 2021 earnings

Briefing

Gates Industrial's first quarter of 2021 demonstrated strong growth, exceeding original guidance and driven by successful innovation investments and growth initiatives.

Gates Industrial reported a strong first quarter in 2021, with net sales up 24.1% and core revenue growth of 21.0%. Net income attributable to shareholders increased by 89.0% to $67.3 million, or $0.23 per diluted share. The company is raising its 2021 guidance for core revenue growth and Adjusted EBITDA margin expansion.

• Net sales increased by 24.1%, driven by a core revenue growth of 21.0%.
• Net income attributable to shareholders rose by 89.0% to $67.3 million, or $0.23 per diluted share.
• Adjusted Net Income per diluted share increased by 57.1% to $0.33.
• Adjusted EBITDA grew by 62.5% to $196.3 million, with an Adjusted EBITDA margin of 22.3%.

Headline financials

Revenue & EPS history

The Company is increasing its full-year 2021 outlook. Core revenue growth is now expected to be in the range of 18% to 21%, increased from the previous range of 9% to 14%. Adjusted EBITDA margin is now expected to be in the range of 22.0% to 22.8%, compared to the previous range of 21.0% to 22.0%. The Company continues to expect capital expenditures to range between $90 million and $110 million and free cash flow conversion to be greater than 80%.