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Jun 30, 2023
Newell Brands Q2 2023 Earnings Report
Second quarter 2023 results announced, with net sales and core sales declining and operating cash flow improving.
Key Takeaways
Newell Brands reported a decrease in net sales by 13% and core sales by 11.9% in the second quarter of 2023. Despite top-line pressure, operating cash flow improved significantly, and the company is investing in capability building and brand support.
Net sales were $2.2 billion, a 13.0 percent decline compared with the prior year period.
Core sales declined 11.9 percent compared with the prior year period.
Reported diluted earnings per share were $0.04 compared with $0.48 in the prior year period.
Year-to-date operating cash flow was $277 million compared with outflow of $450 million in the prior year period.
Newell Brands
Newell Brands
Newell Brands Revenue by Segment
Revenue by Segment
Home & Commercial Revenue
CapyFin.comLearning & Dev Revenue
CapyFin.comOutdoor & Recreation Revenue
CapyFin.com Forward Guidance
The company provided outlook for Q3 2023 and updated full year 2023 outlook, expecting net sales of $2.11 to $2.16 billion for Q3 and $8.2 to $8.34 billion for the full year, with normalized EPS of $0.20 to $0.24 for Q3 and $0.80 to $0.90 for the full year. Operating cash flow for the full year is expected to be in the range of $700 million to $900 million.
Positive Outlook
- Company expects to deliver operating cash flow in the range of $700 million to $900 million for full year 2023.
- Company expects Q3 2023 Net Sales between $2.11 to $2.16 billion.
- Company expects Q3 2023 Normalized EPS between $0.20 to $0.24.
- Company expects full year 2023 Net Sales between $8.2 to $8.34 billion.
- Company expects full year 2023 Normalized EPS between $0.80 to $0.90.
Challenges Ahead
- Company expects core sales to decline 7% to 5% for Q3 2023.
- Company expects core sales to decline 12% to 10% for full year 2023.
- Company expects Normalized Operating Margin between 8.5% to 9.4% for Q3 2023.
- Company expects Normalized Operating Margin between 7.8% to 8.2% for full year 2023.
- Consumers continue to wrestle with elevated levels of core inflation and the resumption of student loan repayments.
Revenue & Expenses
Visualization of income flow from segment revenue to net income