H.B Fuller Q1 Report 2024

The Company’s net revenue for the first quarter of fiscal 2024 was $810 million, up 0.2% versus the first quarter of fiscal 2023. Organic revenue declined 4.2% year-on-year, with pricing adjustments reducing organic revenue by 3.3% and volume reducing organic revenue by 0.9%. Foreign currency translation reduced net revenue by 0.6% and acquisitions increased net revenue by 5.0%.

Highlights

• Net revenue was $810 million, up slightly year-on-year; organic revenue decreased modestly year-on-year due primarily to anticipated pricing changes;
• Gross profit margin was 29.5%; adjusted gross profit margin was 30.1%, up 320 basis points year-on-year, driven principally by favorable net pricing and raw material cost impact and restructuring benefits;
• Net income was $31 million; adjusted EBITDA was $123 million, up 12% year-on-year; adjusted EBITDA margin expanded 160 basis points year-on-year to 15.2%;
• Reported EPS (diluted) was $0.55; adjusted EPS (diluted) was $0.67, up 22% versus the prior year, driven by strong operating income growth;
• Net working capital, as a percentage of annualized net revenue, decreased 270 basis points year-on-year from 19.8% to 17.1%;
• Cash flow from operations increased $42 million year-on-year to $47 million, driven by reductions in net working capital requirements and improved profitability.