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Jan 01, 2023
Hawkins Q3 2023 Earnings Report
Hawkins reported record third quarter performance with sales growth led by the Water Treatment group.
Key Takeaways
Hawkins, Inc. reported a strong third quarter with record sales of $219.2 million, a 17% year-over-year increase. Gross profit increased by 7% to $36.3 million, contributing to a 7% increase in operating income to $15.3 million. Diluted earnings per share increased by 6% to $0.51.
Record third quarter performance in sales, gross profit, operating income, adjusted EBITDA, and operating cash flow.
Sales increased by 17% year-over-year to $219.2 million, driven by a 38% growth in the Water Treatment group.
Gross profit increased by 7% year-over-year to $36.3 million, contributing to a 7% increase in operating income to $15.3 million.
Diluted earnings per share increased by 6% year-over-year to $0.51.
Revenue by Segment
Forward Guidance
The company expects continued softness in the Health and Nutrition segment through the fourth quarter and anticipates continued improvement in operating cash flow, which will support debt reduction.
Positive Outlook
- Continued strong year-over-year revenue growth.
- Continued gross profit growth.
- Expected continued improvement in operating cash flow.
- Anticipated debt reduction.
- Effective navigation of supply challenges.
Challenges Ahead
- Expected continued softness in the Health and Nutrition segment.
- Negative impact on gross profit due to rising material costs.
- Recorded a $3.7 million charge for LIFO expense in the quarter.
- Continued increase in working capital.
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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