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Mar 31, 2024
Mativ Q1 2024 Earnings Report
Reported a decrease in sales compared to the previous year, but showed sequential volume recovery.
Key Takeaways
Mativ reported a decrease in sales compared to the prior year, but experienced sequential volume recovery. The company's GAAP loss included organizational realignment, integration, and purchase accounting expenses. Adjusted EBITDA was slightly lower than the previous quarter due to higher cost inventories.
Sales decreased 8.9% versus the prior year, reflecting sequential volume recovery.
GAAP loss was $(28.0) million, GAAP EPS was $(0.52), which included organizational realignment, integration and purchase accounting expenses.
Adjusted income was $1.1 million, Adjusted EPS was $0.02, and Adjusted EBITDA was $45.8 million.
An organizational restructuring initiative that will reduce corporate costs by up to $20 million annually as we exit 2024 was initiated.
Revenue by Segment
Forward Guidance
Volume recovery is continuing into Q2, and we continue to believe that we will deliver meaningfully improved EBITDA year-over-year for the remainder of 2024.
Positive Outlook
- Volume recovery is continuing into Q2
- Expect will reduce non-operating costs by up to $20 million annually as we exit 2024
- Invest in new assets in filtration and release liners support future top line growth and increase our operating leverage as volume continues to recover
- Continue to see improving demand
- Decisions and actions over the past year will deliver incremental value to our customers and shareholders
Challenges Ahead
- Lower volumes
- Higher production costs
- Customer caution in the current uncertain economic environment
- Impacts from lower volumes and higher production costs more than offset net benefits of input costs/selling price and synergies realization
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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