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Aug 31, 2022
RPM Q1 2023 Earnings Report
Reported record results due to strong sales growth and MAP 2025 savings.
Key Takeaways
RPM International Inc. reported record first-quarter results for fiscal year 2023, with net sales increasing by 17.1% to $1.93 billion and net income increasing by 25.6% to $169.0 million. The company's adjusted EBIT also increased by 33.1% to a record $275.3 million, driven by MAP 2025 savings.
First-quarter net sales increased 17.1% to a record $1.93 billion.
First-quarter net income increased 25.6% to a record $169.0 million, with diluted EPS at $1.31 and adjusted diluted EPS at a record $1.47.
First-quarter EBIT increased 29.8% to a record $255.5 million, and adjusted EBIT increased 33.1% to a record $275.3 million.
Fiscal 2023 second-quarter outlook calls for sales growth of 9% to 12% and adjusted EBIT growth of 30% to 40%.
Revenue by Segment
Forward Guidance
For the second quarter of fiscal 2023, RPM International expects consolidated sales growth of 9% to 12% and consolidated adjusted EBIT to increase by 30% to 40% compared to the prior-year period.
Positive Outlook
- CPG to achieve sales growth in the high-single-digit percentage range due to positive commercial and infrastructure construction activity and pricing management.
- PCG sales to increase in the high-single-digit to low-double-digit percentage range driven by strength in energy markets, reshoring of manufacturing to the U.S. and government infrastructure spending.
- SPG revenue to increase in the high-single-digit percentage range due to continued strength in food coatings and additives and a more efficient supply chain.
- The Consumer Group to lead revenue growth with sales up in the teen percentage range due to improved material supply, pricing management, and a favorable comparison to the 2022 fiscal second quarter.
- Consolidated adjusted EBIT to increase by 30% to 40% compared to the prior-year period.
Challenges Ahead
- CPG will be partially offset by macroeconomic weakness in Europe.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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