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%.

Total Revenue

$1.93B

Previous year: $1.65B

+17.1%

EPS

$1.47

Previous year: $1.08

+36.1%

Gross Profit

$744M

Previous year: $613M

+21.4%

Cash and Equivalents

$198M

Previous year: $213M

-7.3%

Total Assets

$6.8B

Previous year: $6.17B

+10.3%

RPM

RPM 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.
Uncertainty in the global macroeconomic outlook.
Supply chain tightness.
Cost inflation.
Foreign exchange headwinds.

Company Overview

Full financial data and analysis

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