Moen’s Parent Company Reported Revenues Of 23.9 Billion Yuan In The First Half Of The Year

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According to the financial report recently released by Moen (MOEN) parent company — Fortune Brands Home & Security, Inc.(Fortune Group, hereinafter referred to as FBHS), the company’s sales from January to June increased by 33% to reach The company’s sales increased 33% from January to June, reaching $3.707 billion (approximately RMB 23.9 billion).

FBHS has maintained a steady sales growth trend in recent years. From $3.3 billion in 2011 to $6.1 billion in 2020, it has doubled in 10 years. If the momentum of the first half of the year is maintained in the second half of 2021, the U.S. home furnishing giant is expected to hit another record high in sales this year.

 

Sales in the first half of the year were $23.9 billion, with the plumbing business accounting for nearly 60% of the total

On July 28, U.S. time, FBHS released its second quarter and half-year report for 2021. From January to June, FBHS achieved sales of $3.707 billion (about RMB 23.9 billion), an increase of 33% year-on-year, of which the second quarter contributed sales of $1.936 billion, an increase of 41% year-on-year. FBHS has three businesses: plumbing, cabinetry, outdoor and security, and the sales of the three businesses in the first half of the year were $1.316 billion, $1.394 billion and FBHS has three businesses: plumbing, cabinetry, outdoor and security, with first-half sales of $1.316 billion, $1.394 billion and $997 million, up 35 percent, 20 percent, and 54 percent, respectively.

FBHS First Half Sales Data

In terms of profits, on a GAAP basis, FBHS achieved an operating profit of $543 million in the first half of the year, with the plumbing business accounting for the largest share of operating profit at $317 million, up 48% year-over-year, accounting for approximately 58% of total operating profit. Operating profit for the cabinetry business was $147 million and operating profit for outdoor and security was $131 million, up 81% and 71%, respectively. As a result of better-operating profit growth, FBHS’s first-half EBITDA (earnings before taxes, interest, depreciation, and amortization) reached $395 million, an increase of 76 percent over the prior-year period.

FBHS first-half operating profit figures

A review of FBHS’ annual reports published since its IPO shows that the company’s sales revenue has doubled in 10 years. In 2011, FBHS had sales of $3.3 billion and has largely maintained a growth trend in the 10 years since. In 2020, FBHS achieved sales of $6.1 billion, an increase of 6% year-over-year. FBHS forecasts full-year sales growth is expected to be in the range of 23-25% in 2021.

 

With Moen, ROHL, and other six major bathroom brands

According to the official website, FBHS currently employs more than 27,500 people. It has operations in North America, China, New Zealand, South Africa and Europe, etc. FBHS’ Global Plumbing Group (GPG), which is responsible for the plumbing business, was established in 2016. Through mergers and acquisitions, GPG now has six major bathroom brands, Moen (U.S.), Perrin & Rowe (U.K.), Riobel (Canada), HOUSE OF ROHL (U.S.), Shaws (U.K.) and Victoria + Albert (U.K.).

HOUSE OF ROHL is known for its high-grade faucets and also has stores in China

Among them, Moen is one of the most familiar American bathroom brands to Chinese consumers. Founded in 1939, the brand has grown into a globally recognized bathroom brand, which is also described by FBHS as “the number one brand in North America with global brand recognition. It has exclusive contracts with most of the largest homebuilders and benefits from a flexible global supply chain.”

Moen’s recently launched NEBIA BY MOEN shower system

Moen entered the Chinese market in 1994, selling mainly bathroom and kitchen products. Moen also brought a large number of new products to the Shanghai Kitchen & Bath Show held in May this year. In recent years, Moen has been actively developing in the direction of intelligence, launching a number of intelligent toilets, as well as intelligent products that support voice control, such as the Moen U intelligent shower system. But from the relevant description, it is clear that Moen is the main development engine of the FBHS plumbing business.

Moen booth at 2021 Shanghai Kitchen & Sanitary Show

In addition to the bathroom business, FBHS also has a cabinet division, as well as an outdoor and security division. Among them, the cabinet business is carried out by several brands such as Decora, OMEGA, Aristokraft, Diamond, Fieldstone, Kemper, Mantra, etc. Some cabinet brands also sell bathroom cabinet products.

FBHS cabinet brands also sell bathroom cabinet products

 

Acquired over 20 companies in 50 years

As a giant company, FBHS is far less well-known in China than subsidiaries such as Moen and ROHL. However, the development of this company is a typical example of the development and growth of the household industry through acquisition. It can be said that the history of FBHS is a history of brand acquisitions.

In Fortune magazine’s recent list of the 500 largest companies in the United States, FBHS was ranked 456th, up 38 spots from the previous year. And another home furnishing giant also based in the United States, Masco, was ranked 398 this year, reflecting the industry and investment community’s assessment of the two giants. As home furnishing giants also pursuing a multi-brand strategy, FBHS and Masco are expected to remain in competition for a long time. Industry events such as mergers, acquisitions, sales, and restructuring handled by the two giants may be staged one after another.