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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.
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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