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Jun 30, 2022

Fortune Brands Q2 2022 Earnings Report

Fortune Brands reported strong results, with price and cost actions fully offsetting inflation, and separation of companies progressing ahead of schedule.

Key Takeaways

Fortune Brands Home & Security reported strong second quarter results with sales of $2.1 billion, a 9% increase versus a year ago, driven by resilient consumer demand and effective price and cost management. The company is also progressing ahead of schedule with the separation of its two companies.

2Q 2022 sales of $2.1 billion, an increase of 9 percent versus a year ago

2Q 2022 earnings per share (EPS) of $1.46, a decrease of 6 percent versus a year ago

EPS before charges / gains of $1.67, an increase of 7 percent versus a year ago

Separation of companies progressing ahead of schedule; Company expects to file initial Form 10 during 3Q

Total Revenue
$1.26B
Previous year: $1.23B
+2.1%
EPS
$1.47
Previous year: $1.57
-6.4%
Operating Margin Before Charges/Gains
15.1%
Previous year: 15.4%
-1.9%
Gross Profit
$763M
Previous year: $706M
+8.1%
Cash and Equivalents
$361M
Previous year: $460M
-21.6%
Free Cash Flow
$170M
Previous year: $292M
-41.6%
Total Assets
$8.33B
Previous year: $7.7B
+8.3%

Fortune Brands

Fortune Brands

Fortune Brands Revenue by Segment

Forward Guidance

The Company now anticipates delivering an increased full-year sales growth in the range of 6.5 percent to 7.5 percent relative to a global home products market growing at 3 percent to 5 percent and a U.S. home products market growing at 4 percent to 6 percent. The Company now expects EPS before charges / gains for the full year to be in the range of $6.36 to $6.50 to account for incremental costs related to the separation. The Company now expects to generate free cash flow of approximately $590 million to $630 million.

Positive Outlook

  • Increased full-year sales growth in the range of 6.5% to 7.5%.
  • Global home products market growing at 3% to 5%.
  • U.S. home products market growing at 4% to 6%.
  • EPS before charges / gains for the full year to be in the range of $6.36 to $6.50.
  • Free cash flow of approximately $590 million to $630 million.