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Mar 31, 2024
Compass Diversified Q1 2024 Earnings Report
Compass Diversified's first quarter performance was strong, driven by the Branded Consumer businesses, with net sales up 8% and Adjusted EBITDA up 28%.
Key Takeaways
Compass Diversified reported a strong start to 2024, with net sales up 8% to $524.3 million and Adjusted EBITDA up 28% to $94.8 million. The Branded Consumer segment performed particularly well, with net sales up 11% on a pro forma basis. The company raised its outlook for the year, reflecting optimism about its businesses.
Net sales increased by 8% to $524.3 million, or 4% on a pro forma basis.
Branded Consumer net sales increased by 11% on a pro forma basis, reaching $375.4 million.
Adjusted EBITDA increased by 28% to $94.8 million.
The company raised its outlook for Subsidiary Adjusted EBITDA to between $480 million and $520 million for the full year 2024.
Compass Diversified
Compass Diversified
Compass Diversified Revenue by Segment
Revenue by Segment
Branded Consumer Revenue
CapyFin.com Forward Guidance
Compass Diversified raised its outlook for Subsidiary Adjusted EBITDA to between $480 million and $520 million and Adjusted Earnings to between $148 million and $163 million for the full year 2024.
Positive Outlook
- Strong performance of branded consumer subsidiaries.
- Sale of Crosman.
- Interest savings on outstanding floating rate debt.
- Use of proceeds from the Crosman sale to pay down its revolver balance outstanding.
- The Honey Pot Co. is expected to contribute to Subsidiary Adjusted EBITDA.
Challenges Ahead
- Sale of Crosman reduced the outlook.
- Estimate is absent additional acquisitions or divestitures.
- Excludes corporate expenses such as interest expense, management fees paid by CODI and corporate overhead.
- Adjusted EBITDA only includes results from The Honey Pot Co. from the date of acquisition.
- Uncertainty regarding Income (Loss) from Continuing Operations or Net Income (Loss) or the applicable reconciling items.