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Jul 02, 2022
Hayward Q2 2022 Earnings Report
Hayward's Q2 2022 performance was marked by a 10% increase in net sales and a 25% increase in net income, driven by strong North America sales and price realization, despite macroeconomic headwinds in Europe and weather impacts in North America.
Key Takeaways
Hayward Holdings reported strong Q2 2022 results with a 10% increase in net sales to $399.4 million and a 25% increase in net income to $66.3 million. The growth was primarily driven by North America sales, favorable pricing, and acquisitions. However, the company is reducing its full fiscal year 2022 guidance due to expected channel inventory reduction and geopolitical events in Europe.
Net sales increased by 10% year-over-year to $399.4 million, with North America increasing by 17%.
Net income increased by 25% year-over-year to $66.3 million.
Adjusted EBITDA increased by 16% year-over-year to $127.6 million.
Gross profit margin increased by 130 basis points to 47.4%.
Hayward
Hayward
Forward Guidance
Hayward is reducing its full fiscal year 2022 guidance to reflect its outlook for the expected channel inventory reduction in the second half of the year as well as continued impact of geopolitical events in Europe and unfavorable exchange rates. For the full fiscal year 2022, Hayward's outlook for net sales is a decline of 2% to 6% year-over-year and for Adjusted EBITDA, is $385 million to $400 million.
Positive Outlook
- Robust consumer demand for pool equipment products in the U.S.
- Strong demand for SmartPadTM products into both new construction and the aftermarket.
- Recent acquisitions support Hayward's leading market position.
- New products support Hayward's leading market position.
- Confident in ability to successfully execute in an evolving environment in the near-term and remains positive about its long-term growth outlook.
Challenges Ahead
- Expected channel inventory reduction in the second half of the year.
- Continued impact of geopolitical events in Europe.
- Unfavorable exchange rates.
- Net sales outlook is a decline of 2% to 6% year-over-year.
- Adjusted EBITDA outlook is $385 million to $400 million.