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H.B. Fuller
🇺🇸 NYSE:FUL
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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

Total Revenue
$809M
Previous year: $856M
-5.5%
EPS
$0.55
Previous year: $0.8
-31.3%
Adjusted EBITDA
$110M
Previous year: $113M
-2.7%
Adjusted EBITDA Margin
13.6%
Gross Profit
$215M
Previous year: $213M
+0.8%
Cash and Equivalents
$125M
Previous year: $63M
+99.2%
Free Cash Flow
-$42.1M
Previous year: -$66.6M
-36.8%
Total Assets
$4.54B
Previous year: $3.74B
+21.3%

H.B. Fuller

H.B. Fuller

H.B. Fuller Revenue by Segment

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

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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