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Jun 30, 2023

Advantage Solutions Q2 2023 Earnings Report

Advantage Solutions reported strong company performance and advanced its transformation journey.

Key Takeaways

Advantage Solutions reported a 5.7% increase in revenue, reaching $1.0 billion, and Adjusted EBITDA of $104.2 million, a 3.8% decrease year-over-year. The company is focused on strengthening its culture, simplifying operations, and improving financial discipline to drive long-term, profitable growth.

Revenues for the second quarter were $1,037.1 million, up $56.0 million, or 5.7%, from second quarter 2022 revenues of $981.1 million.

Excluding the impact of unfavorable foreign exchange rates and acquisitions / divestitures, revenues increased 7.7%.

Operating income in the quarter was $22.3 million, compared with operating income of $28.3 million in the second quarter of 2022.

Net loss in the quarter was $7.8 million compared with net income of $3.7 million in the second quarter of 2022.

Total Revenue
$1.04B
Previous year: $981M
+5.7%
EPS
-$0.03
Previous year: $0.13
-123.1%
Adjusted EBITDA
$104M
Gross Profit
$132M
Previous year: $139M
-5.0%
Cash and Equivalents
$165M
Previous year: $116M
+42.2%
Free Cash Flow
$49.3M
Previous year: $42.9M
+15.1%
Total Assets
$4.12B
Previous year: $5.84B
-29.5%

Advantage Solutions

Advantage Solutions

Advantage Solutions Revenue by Segment

Forward Guidance

The Company is reiterating its guidance for fiscal 2023 with Adjusted EBITDA anticipated to range from $400 million to $420 million, including the impact of completed divestitures.

Positive Outlook

  • Continued realization of pricing
  • Growth in in-store sampling and demonstration events
  • Further investments behind technology and talent

Revenue & Expenses

Visualization of income flow from segment revenue to net income