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Mar 31, 2023

Avient Q1 2023 Earnings Report

Reported first quarter results with sales in line with guidance and adjusted EPS exceeding guidance due to favorable margins.

Key Takeaways

Avient Corporation announced its first quarter 2023 results, with sales of $846 million. GAAP EPS was $0.23, and adjusted EPS was $0.63, exceeding guidance. The company maintained its full-year adjusted EBITDA and EPS guidance.

First quarter sales of $846 million in line with guidance

Adjusted EPS of $0.63 exceeded guidance of $0.55, driven by better-than-projected margins in both segments

Full year adjusted EBITDA and EPS guidance of $530 million and $2.40, respectively, maintained given present macroeconomic uncertainty

Sustainability Investor Day to be held on September 20th will highlight Avient’s sustainable solutions portfolio and growth opportunities

Total Revenue
$846M
Previous year: $1.29B
-34.6%
EPS
$0.63
Previous year: $0.99
-36.4%
Adjusted Gross margin
30.2%
Previous year: 23.2%
+30.2%
Adjusted Operating income
10%
Previous year: 10.5%
-4.8%
Gross Profit
$248M
Previous year: $294M
-15.7%
Cash and Equivalents
$583M
Previous year: $563M
+3.6%
Free Cash Flow
-$42.5M
Previous year: $285M
-114.9%
Total Assets
$6.11B
Previous year: $5.04B
+21.2%

Avient

Avient

Avient Revenue by Segment

Forward Guidance

The company expects second quarter sales and adjusted EPS of $845 million and $0.60, respectively, and is maintaining its previous full year guidance of adjusted EBITDA and EPS of $530 million and $2.40.

Positive Outlook

  • Slightly higher margins projected for the second quarter compared to initial projections.
  • Focus on executing long-term strategy.
  • Increasing customer and employee engagement.
  • Optimizing cost structure by capturing additional synergies from the Clariant acquisition.
  • Minimizing working capital.

Challenges Ahead

  • Global demand conditions continue to be challenged by negative consumer sentiment.
  • Rising interest rates.
  • Inflation.
  • Customers in Europe and the Americas remain cautious and are managing inventory levels tightly.
  • China’s re-opening is progressing at a measured pace.

Revenue & Expenses

Visualization of income flow from segment revenue to net income