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May 31, 2021

RPM Q4 2021 Earnings Report

RPM reported strong fourth-quarter results driven by sales growth and margin improvements.

Key Takeaways

RPM International Inc. reported a 19.6% increase in net sales to $1.74 billion for the fiscal 2021 fourth quarter. Diluted EPS increased 42.9% to $1.20, and adjusted diluted EPS increased 13.3% to $1.28. The company successfully completed its MAP to Growth operating improvement program, exceeding its original target by $30 million in annualized savings.

Net sales increased by 19.6% to $1.74 billion.

Diluted EPS increased by 42.9% to $1.20.

Adjusted diluted EPS increased by 13.3% to $1.28.

MAP to Growth operating improvement program was successfully completed, exceeding savings target.

Total Revenue
$1.74B
Previous year: $1.46B
+19.5%
EPS
$1.28
Previous year: $1.13
+13.3%
Gross Profit
$693M
Previous year: $554M
+25.2%
Cash and Equivalents
$247M
Previous year: $233M
+5.7%
Total Assets
$6.25B
Previous year: $5.63B
+11.0%

RPM

RPM

RPM Revenue by Segment

Forward Guidance

RPM anticipates first-quarter consolidated sales to increase in the low- to mid-single digits. Adjusted EBIT is expected to decrease 25% to 30% due to anticipated decline in Consumer Group.

Positive Outlook

  • Construction Products Group and Performance Coatings Group are expected to experience sales increases in the high-single or low-double digits.
  • The Specialty Products Group is expected to generate double-digit sales increases.
  • Global economies are expected to continue improving.
  • Consumer Group’s fiscal 2022 first-quarter sales are expected to be above the pre-pandemic record.
  • Adjusted EBIT is expected to grow in three of four segments.

Challenges Ahead

  • Supply constraints have slowed production in some product categories.
  • Macroeconomic factors are creating inflationary and supply pressures.
  • Consumer Group sales are expected to decline double digits due to difficult comparisons to the prior year.
  • First-quarter consolidated adjusted EBIT is expected to decrease 25% to 30%.
  • Consumer Group is facing several margin challenges including selling price negotiations, insufficient supply of raw materials and outsourced production.