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Apr 02, 2023
Hawkins Q4 2023 Earnings Report
Hawkins reported record fourth quarter sales and EPS, driven by increased selling prices and strong performance in the Water Treatment segment.
Key Takeaways
Hawkins, Inc. reported record fourth quarter sales of $228.1 million and diluted EPS of $0.55. Adjusted EBITDA increased by 21% compared to the same period of the prior year. The company's strong operating cash flow allowed it to pay down $19 million in debt during the quarter.
Record fourth quarter sales of $228.1 million.
Record fourth quarter diluted earnings per share (EPS) of $0.55, 10% higher than the same period of the prior year.
Adjusted EBITDA of $27.0 million, a 21% increase over the same period of the prior year.
Record fourth quarter operating cash flow allowed the company to pay down $19 million in debt.
Hawkins
Hawkins
Hawkins Revenue by Segment
Revenue by Segment
Water Treatment Revenue
CapyFin.comIndustrial Revenue
CapyFin.comHealth and Nutrition Revenue
CapyFin.com Forward Guidance
Hawkins expects continued top and bottom-line growth in its Water Treatment segment. The company is cautiously optimistic about its Industrial segment, but believes economic pressures will continue to weigh on many of its customers and impact demand. In Health and Nutrition, the company expects the decline seen in the latter half of fiscal 2023 to continue through much of fiscal 2024.
Positive Outlook
- Continued top and bottom-line growth expected in Water Treatment segment.
- Expanding geographic footprint positions the company well for continued growth in Water Treatment.
- Company believes it will continue to generate strong operating cash flow.
- Company will continue to pay down debt during fiscal year 2024.
- Diversity of businesses and overall strength of the company.
Challenges Ahead
- Economic pressures expected to weigh on Industrial segment customers and impact demand.
- Decline in Health and Nutrition segment expected to continue through much of fiscal 2024.
- Consumer demand for health and immunity products declined from the COVID-bump high.
- Customers are working through excess inventory in the Health and Nutrition segment.
- Continued raw material cost increases.
Revenue & Expenses
Visualization of income flow from segment revenue to net income