Loading...
•
Mar 31, 2023
Mativ Q1 2023 Earnings Report
Mativ's first quarter results were announced, revealing a sales increase driven by the merger but impacted by customer de-stocking and operational inefficiencies.
Key Takeaways
Mativ reported a 66.9% increase in sales to $679.0 million, reflecting the merger's benefit. However, the company experienced a GAAP loss of $7.7 million, with GAAP EPS at $(0.14). Adjusted EPS was $0.25. The quarter was affected by customer de-stocking, labor strikes in France, and manufacturing inefficiencies, which pressured margins.
Sales increased 66.9% to $679.0 million, driven by the merger; organic sales grew 1% in constant currency.
GAAP loss was $7.7 million, with a GAAP EPS of $(0.14).
Adjusted EPS was $0.25, and Adjusted EBITDA was $65.7 million.
Price increases offset higher input costs, but lower volumes due to customer de-stocking and manufacturing issues impacted margins.
Forward Guidance
Mativ anticipates delivering significantly improved sequential EBITDA for the remainder of the year and expects to exit 2023 on a strong trajectory toward $100 million EBITDA quarters.
Positive Outlook
- Customer indications suggest the peak de-stocking impacts are subsiding, with normalized volume activity expected in the second half of the year.
- Improved manufacturing performance is anticipated to translate into better margins as the year progresses.
- Synergy execution remains on track, with a $25 million EBITDA benefit expected in 2023.
- SG&A synergies executed in the previous year will be fully realized this year.
- Input costs are easing, with benefits expected to flow through to margins in the coming quarters.
Challenges Ahead
- The macro environment remains uncertain.
- The first quarter was impacted by customer de-stocking, operational inefficiencies in French facilities due to labor strikes, and inefficiencies in several US sites.
- Continued headwinds are expected in the second quarter.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...