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Mar 04, 2023
H.B. Fuller Q1 2023 Earnings Report
Reported net income of $22 million and adjusted EBITDA of $110 million, which was at the high-end of the company's guidance.
Key Takeaways
H.B. Fuller reported first quarter 2023 results with net revenue of $809 million, a decrease of 5.5% year-on-year. Net income was $22 million, and adjusted EBITDA was $110 million, at the high end of the company's expectations. The company initiated strategic restructuring to align cost structure and completed a refinancing of a majority of outstanding debt.
Net revenue of $809 million, down 5.5% year-on-year, in-line with Company expectations
Adjusted gross margin of 26.9% increased 190 basis points year-on-year, driven by the combined effect of pricing and raw material cost developments
Adjusted EBITDA was $110 million, at the high end of Company expectations, and adjusted EBITDA margin expanded year-on-year to 13.6%
Cash flow from operations in the first quarter improved $23 million year-on-year
H.B. Fuller
H.B. Fuller
H.B. Fuller Revenue by Segment
Revenue by Segment
Engineering Adhesives Revenue
CapyFin.com Forward Guidance
The Company continues to expect adjusted EBITDA for fiscal 2023 to be in the range of $580 million to $610 million. Adjusted EPS (diluted) is now expected to be in the range of $4.10 to $4.50. Revenue for fiscal 2023 is now expected to be down 1% to 4% versus 2022.
Positive Outlook
- Adjusted EBITDA for fiscal 2023 to be in the range of $580 million to $610 million, equating to growth of approximately 9% to 15% versus fiscal year 2022
- Adjusted EPS (diluted) is now expected to be in the range of $4.10 to $4.50, equating to growth of between 3% to 13% year-on-year
- Fully diluted shares outstanding is now expected to be approximately 56 million
- Operating cash flow in fiscal 2023 is still expected to be between $300 million and $350 million
Challenges Ahead
- Revenue for fiscal 2023 is now expected to be down 1% to 4% versus 2022
- Organic revenue for fiscal 2023 is now expected to be in the range of down 1% to up 1%, reflecting expected demand weakness in Construction Adhesives
- Foreign currency translation is now expected to unfavorably impact net revenue growth by between 1% and 2% in fiscal year 2023