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Dec 30, 2023

Fortune Brands Q4 2023 Earnings Report

Fortune Brands delivered solid sales and margin performance with strong cash generation.

Key Takeaways

Fortune Brands Innovations reported a 3% increase in Q4 2023 sales, reaching $1.2 billion. EPS decreased by 35% to $0.64, while EPS before charges/gains decreased by 11% to $0.95.

Q4 2023 sales were $1.2 billion, an increase of 3 percent over Q4 2022.

Organic sales excluding the impact of the non-reoccurring 53rd week and FX were $1.1 billion, a decrease of 3 percent versus Q4 2022

Q4 2023 earnings per share (EPS) were $0.64, a decrease of 35 percent versus a year ago

Company announces new $650 million share repurchase authorization reflecting confidence in outlook and commitment to driving long-term shareholder value

Total Revenue
$1.16B
Previous year: $1.13B
+2.7%
EPS
$0.95
Previous year: $1.07
-11.2%
Operating Margin Before Charges/Gains
15.8%
Previous year: 17.3%
-8.7%
Gross Profit
$477M
Previous year: -$2.46B
-119.3%
Cash and Equivalents
$366M
Previous year: $643M
-43.0%
Free Cash Flow
$799M
Previous year: $207M
+287.1%
Total Assets
$6.52B
Previous year: $6.12B
+6.6%

Fortune Brands

Fortune Brands

Forward Guidance

Full year 2024 financial guidance reflects expectation of outperformance as the company executes strategy of growing the core and accelerating connected products, and the defined pathway toward margin growth.

Positive Outlook

  • Net sales 3.5% to 5.5%
  • Operating margin before charges / gains 16.5% to 17.5%
  • EPS before charges / gains $4.20 to $4.40
  • Cash flow from operations Around $720 million
  • Free cash flow Around $520 million

Challenges Ahead

  • Global market -3% to 0%
  • U.S. market -2% to 0%
  • U.S. R&R -4% to -2%
  • China market -9% to -7%
  • Net sales [organic] -1% to 1%