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Oct 01, 2022
Hayward Q3 2022 Earnings Report
Hayward's financial performance declined due to lower sales volume and macroeconomic factors.
Key Takeaways
Hayward Holdings reported a 30% decrease in net sales to $245.3 million for the third quarter of fiscal year 2022. Net income decreased by 54% to $23.1 million, and adjusted diluted EPS decreased by 43% to $0.14. The decline in sales was attributed to distribution channel destocking, macroeconomic uncertainty, and geopolitical factors in Europe.
Net sales decreased 30% year-over-year to $245.3 million.
Net Income decreased 54% year-over-year to $23.1 million.
Adjusted EBITDA decreased 39% year-over-year to $60.4 million.
Adjusted diluted EPS decreased 43% year-over-year to $0.14.
Hayward
Hayward
Forward Guidance
Hayward is refining its full fiscal year 2022 guidance to reflect higher than expected inflation impacting the fourth quarter, normalizing channel inventory levels and geopolitical events in Europe. For fiscal year 2022, Hayward now expects net sales to decrease approximately 6% from prior year, and Adjusted EBITDA of $365 million to $370 million.
Positive Outlook
- Increasing consumer demand for pool equipment products in the U.S.
- Demand for SmartPadTM products into the aftermarket.
- Long-term outlook for profitable growth
- Long-term outlook for robust cash flow generation
- Driven by new product innovation, growing commercial relationships with prominent pool dealers and builders, and agile manufacturing capabilities.
Challenges Ahead
- Higher than expected inflation impacting the fourth quarter
- Normalizing channel inventory levels
- Geopolitical events in Europe
- Net sales expected to decrease approximately 6% from prior year
- Adjusted EBITDA of $365 million to $370 million