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Sep 30, 2022
Mativ Q3 2022 Earnings Report
Reported a 76% increase in sales and a GAAP EPS of $(0.43).
Key Takeaways
Mativ Holdings, Inc. reported a 76% increase in sales to $674.1 million, driven by strong growth in release liners, protective solutions, filtration, and paper and specialty packaging. GAAP EPS was $(0.43), while adjusted EPS was $0.74. The company expects 4Q:22 Adjusted EBITDA to be consistent with 3Q:22 Adjusted EBITDA of $93.0 million and continued year-over-year Adjusted EBITDA growth into 2023.
Sales increased 76% to $674.1 million with 12% constant currency organic sales growth.
GAAP EPS was $(0.43); Adjusted EPS was $0.74.
GAAP Operating Loss was $13.9 million; Adjusted Operating Profit was $65.5 million, up 24% on a comparable basis.
Pricing actions across the Company driving top-line gains and offsetting raw material cost increases, with margin expansion across most categories.
Forward Guidance
The Company now expects 4Q:22 Adjusted EBITDA to be consistent with 3Q:22 Adjusted EBITDA of $93.0 million and continued year-over-year Adjusted EBITDA growth into 2023. The Company still expects net leverage to be at 3.75x or below by year-end with the benefit of enhanced working capital programs, and to be within the 2.5x to 3.5x target range during 2023
Positive Outlook
- Consistent sequential EBITDA in the fourth quarter, which would represent another period of strong comparable year-over-year growth.
- Profit growth trends into 2023 as we trend toward $100 million EBITDA quarters.
- Recovering from the cybersecurity incident's impact on our operating performance.
- Accelerated synergy realization.
- Additional pricing actions.
Challenges Ahead
- Unfavorable currency trends have accelerated.
- Increase in volatility in the macro backdrop, including global demand uncertainty.
- Inflationary pressures led by the rapid escalation in energy costs, particularly in Europe.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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