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Oct 01, 2023
Hawkins Q2 2024 Earnings Report
Hawkins reported strong Q2 2024 results driven by growth in the Water Treatment segment and disciplined inventory management.
Key Takeaways
Hawkins, Inc. reported record second-quarter results for fiscal year 2024, with significant growth in gross profit, operating income, and earnings per share. The Water Treatment segment was a key driver of this growth, while the company also focused on debt reduction and strategic acquisitions.
Second quarter sales reached $236.5 million, with Water Treatment group sales growing 17% year-over-year.
Record quarterly gross profit of $53.9 million, a 16% increase over the prior year, resulted in record quarterly operating income of $33.0 million, up 25% year-over-year.
Record second quarter diluted EPS of $1.10, 28% higher than the same period last year.
Record quarterly operating cash flow of $57.8 million, used to reduce debt by $28.6 million, lowering debt to $60.0 million and leverage ratio to 0.45x adjusted EBITDA.
Revenue by Segment
Forward Guidance
The company anticipates continued growth in the Water Treatment segment for the remainder of the year, remains cautiously optimistic about the Industrial segment, and expects the Health and Nutrition distribution business to improve on a year-over-year basis beginning in calendar 2024.
Positive Outlook
- Continued growth in Water Treatment segment expected.
- Cautious optimism for the Industrial segment.
- Health and Nutrition distribution business expected to improve starting in calendar 2024.
- Strong operating cash flow generation.
- Ability to manage the balance sheet effectively.
Challenges Ahead
- Potential changes in regulation.
- Changes in labor markets.
- Changes in competition and price pressures.
- Changes in demand and customer requirements.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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