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May 31, 2022
RPM Q4 2022 Earnings Report
RPM reported record results, driven by strong sales and adjusted EBIT growth.
Key Takeaways
RPM International Inc. reported record fourth-quarter net sales of $1.98 billion, a 13.7% increase year-over-year. Net income increased 27.4% to $199.0 million, with diluted EPS at $1.54 and adjusted diluted EPS at $1.42. The company's performance was driven by all four segments, each generating record sales.
Net sales increased 13.7% to a record $1.98 billion.
Net income increased 27.4% to a record $199.0 million.
Diluted EPS was a record $1.54, and adjusted diluted EPS was a record $1.42.
EBIT increased 17.1% to a record $251.7 million, and adjusted EBIT increased 11.7% to a record $263.7 million.
RPM
RPM
RPM Revenue by Segment
Revenue by Segment
Consumer Group Revenue
CapyFin.com Forward Guidance
For the first quarter of fiscal 2023, RPM expects sales growth in the mid-teens and adjusted EBIT growth of 20% to 25%.
Positive Outlook
- Anticipates sales growth in the teens in all four of its operating segments.
- Expects to continue implementing price increases as needed.
- Improving operational efficiencies in order to minimize cost pressures.
- Demand for products and services will remain strong.
- Making strategic investments in organic growth initiatives.
Challenges Ahead
- Strengthening U.S. dollar is expected to be a headwind impacting the translation of RPM’s international results.
- Significant cost increases to continue for certain raw materials, labor and packaging.
- Anticipates continued higher costs from unreliable bulk transportation, which creates production inefficiencies.
- Fuel surcharges, which are being driven by high energy prices that have been exacerbated by the conflict in Ukraine.
- Cost pressures are expected to disproportionately affect the Consumer segment.