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Jun 29, 2024

Fortune Brands Q2 2024 Earnings Report

Delivered solid sales and strong margin results.

Key Takeaways

Fortune Brands Innovations reported a 7% increase in sales to $1.2 billion in Q2 2024. EPS increased by 33% to $1.06, and EPS before charges/gains increased by 8% to $1.16. The company updated its full-year 2024 guidance, reflecting a revised macro-economic outlook and strength in key businesses.

Q2 2024 sales were $1.2 billion, an increase of 7 percent versus Q2 2023.

Organic sales were $1.1 billion, a decrease of 3 percent versus Q2 2023

Q2 2024 earnings per share (EPS) were $1.06, an increase of 33 percent versus a year ago; EPS before charges / gains were $1.16, an increase of 8 percent versus Q2 2023

Company updates full-year 2024 guidance, reflecting a revised macro-economic outlook and strength in key businesses while maintaining prior mid-point of EPS before charges / gains range

Total Revenue
$1.24B
Previous year: $1.16B
+6.5%
EPS
$1.16
Previous year: $1.07
+8.4%
Operating Margin Before Charges/Gains
17.4%
Previous year: 17%
+2.4%
Gross Profit
$523M
Previous year: $1.16B
-55.1%
Cash and Equivalents
$353M
Previous year: $682M
-48.3%
Free Cash Flow
$223M
Previous year: $358M
-37.8%
Total Assets
$6.67B
Previous year: $6.87B
-2.9%

Fortune Brands

Fortune Brands

Forward Guidance

Fortune Brands is updating its full-year guidance to reflect expectations for continued out-performance driven by its core businesses, with particular strength in its Outdoors segment and its Moen North America business, and its accelerating digital sales, which are offset by weaker China sales. The company is narrowing the range around its prior EPS before charges / gains mid-point due to expected growth in its core and digital businesses and strong margin performance.

Positive Outlook

  • U.S. SFNC 8% to 10%
  • Outdoors net sales 2% to 4%
  • Water Innovations operating margin before charges / gains Around 24%
  • Cash flow from operations Around $700 million
  • Cash conversion Around 100%

Challenges Ahead

  • Global market -3% to -1%
  • U.S. market -1% to flat
  • U.S. R&R -4% to -3%
  • China market -20% to -15%
  • Net sales [organic] -2% to flat