H.B. Fuller Q3 Report 2023

• Net revenue of $901 million, down 4.3% year-on-year; organic revenue decreased 7.4% year-onyear, driven by lower volume;
• Gross margin was 29.3%; adjusted gross margin of 30.0% increased 350 basis points year-on-year, driven by pricing and raw material cost actions and restructuring benefits;
• Net income was $38 million; adjusted EBITDA was $156 million, up 13% year-on-year, adjusted
  EBITDA margin expanded 270 basis points year-on-year to 17.3%;
• Cash flow from operations in the third quarter improved $50 million year-on-year, or 87%, to $108
  million.

The Company’s net revenue for the third quarter of fiscal 2023 was $901 million, down 4.3% versus the third quarter of fiscal 2022. Organic revenue declined 7.4% year-on-year, driven by lower volume, offset somewhat by favorable pricing. Volume declined 8.0%, driven by customer destocking actions, principally in Hygiene, Health, and Consumable Adhesives, and generally slower industrial demand across all three global business units. Volume development in the third quarter improved significantly versus the second quarter, when volume declined 14.2% year-on-year. Pricing actions favorably impacted organic growth by 0.6 percentage points. Foreign currency translation reduced net revenue growth by 1.7 percentage points and acquisitions increased net revenue growth by 4.8 percentage points.