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Aug 28, 2021
H.B. Fuller Q3 2021 Earnings Report
Net revenue increased by 20%, driven by strong volume growth and pricing, with adjusted EPS up 4% year-over-year.
Key Takeaways
H.B. Fuller reported a strong third quarter with double-digit organic revenue growth and strategic actions to manage raw material shortages and inflationary pressures. The company anticipates a significant improvement in margins in the fourth quarter due to implemented pricing adjustments.
Net revenue increased 20% versus the third quarter of last year, with organic revenue up 16%, including 10% from volume growth and 6% from pricing.
Net income increased to $32 million, and adjusted EBITDA increased 5% year-over-year to $111 million.
Earnings per diluted share (EPS) were $0.58, with adjusted EPS of $0.79, a 4% increase year over year.
Strategic supply chain management enabled the company to secure raw materials, and pricing actions are expected to restore margins in the fourth quarter and into 2022.
Revenue by Segment
Forward Guidance
Full-year revenue growth is now anticipated to be 17% to 18% compared with fiscal 2020, resulting in anticipated fourth quarter revenue growth of 15% to 17% versus the fourth quarter of 2020. For the fiscal year 2021, adjusted EBITDA is anticipated to be approximately $460 million to $470 million, an increase of 13% to 16% versus 2020.
Positive Outlook
- Full-year revenue growth is anticipated to be 17% to 18% compared with fiscal 2020.
- Anticipated fourth quarter revenue growth of 15% to 17% versus the fourth quarter of 2020.
- Adjusted EBITDA is anticipated to be approximately $460 million to $470 million.
- Adjusted EBITDA is expected to increase 13% to 16% versus 2020.
- Guidance is supported by on-going recovery in global industrial production, pricing actions balancing higher input costs, and benefits from the company’s operational improvement projects.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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