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Dec 03, 2022
H.B. Fuller Q4 2022 Earnings Report
H.B. Fuller reported fourth quarter and fiscal year 2022 results.
Key Takeaways
H.B. Fuller's Q4 2022 net revenue was $958 million, up 7% year-on-year. Reported EPS (diluted) was $0.87; adjusted EPS (diluted) was $1.04. The company expects global economic conditions to remain slow and is prepared to control expenses and expand margins.
Net revenue of $958 million, up 7% year-on-year.
Organic revenue increased 6% year-on-year.
Net Income was $48 million; adjusted EBITDA of $141 million was up 5% year-on-year.
Reported EPS (diluted) was $0.87; adjusted EPS (diluted) was $1.04.
H.B. Fuller
H.B. Fuller
H.B. Fuller Revenue by Segment
Revenue by Segment
Engineering Adhesives Revenue
CapyFin.com Forward Guidance
Adjusted EBITDA for fiscal 2023 is expected to be in the range of $580 million to $610 million. Revenue for 2023 is expected to be flat to down 3% versus 2022; organic revenue growth for fiscal year 2023 is expected to be in the range of 2% to 4%.
Positive Outlook
- Adjusted EBITDA for fiscal 2023 is expected to be in the range of $580 million to $610 million, equating to growth of approximately 9% to 15% versus fiscal year 2022.
- Organic revenue growth for fiscal year 2023 is expected to be in the range of 2% to 4%, adjusting for the impact of the extra week in fiscal year 2022.
- Adjusted EPS in fiscal year 2023 is expected to be in the range of $4.15 to $4.55, equating to growth of between 4% to 14% year-on-year.
- Operating cash flow in fiscal year 2023 is expected to be between $300 million and $350 million.
- The core tax rate, excluding the impact of discrete items, is anticipated to be between 27% and 29% in fiscal year 2023
Challenges Ahead
- Revenue for 2023 is expected to be flat to down 3% versus 2022.
- Fiscal year 2023 will be a 52-week year compared to a 53-week year in fiscal year 2022, which will unfavorably impact year-on-year net revenue and adjusted EBITDA growth by approximately 2% in fiscal year 2023.
- Foreign currency translation is expected to unfavorably impact net revenue growth by between 3% to 4% in fiscal year 2023.
- Net interest expense for fiscal 2023 is expected to be between $115 million and $125 million, up from fiscal year 2022, reflecting higher interest rates.
- Capital expenditures are expected to be $120 million.