Press release
Newell Brands Announces Second Quarter 2024 Results
Turnaround Gains Further Traction as Sales Improve Sequentially Gross and Operating Margin Increase Significantly Versus Prior Year Raises Outlook for Full
About this update from Newell Brands Inc.
[{"type":"text","content":"\nTurnaround Gains Further Traction as Sales Improve Sequentially\nGross and Operating Margin Increase Significantly Versus Prior Year\nRaises Outlook for Full Year 2024\n\n\n ATLANTA--(BUSINESS WIRE)--\nNewell Brands (NASDAQ: NWL) today announced its second quarter 2024 financial results.\n\n\nChris Peterson, Newell Brands President and Chief Executive Officer, said, \"We are making significant progress in driving Newell's turnaround. During the second quarter, we continued to deliver on our operational and financial priorities for the year, as results came in at the high-end or ahead of our plan across key metrics. Since implementing the new corporate strategy, we have taken decisive actions that have improved the company's top line trajectory, driven significant gross and operating margin expansion, delevered the balance sheet and improved cash flow performance, while strengthening our team, Newell's front-end commercial capabilities and fostering a high-performance, high-accountability culture. We remain laser focused on returning the business to sustainable and profitable growth and are confident that we are pursuing the right strategy to accomplish this.\"\n\n\nMark Erceg, Newell Brands Chief Financial Officer, said, \"Second quarter reported gross margin increased by 590 basis points versus last year, which builds on the 110, 360 and 380 basis point expansions that occurred during the three sequential quarters that preceded it, respectively. The rapid and dramatic improvement we have delivered in gross margin ties directly back to the development and implementation of our new strategy and has allowed us to invest more in advertising and critical front-end commercial capabilities, while also expanding reported operating margins - which were up 260 basis points versus last year in the second quarter. During each of the last four quarters we have also achieved significant year-over-year improvements in our cash conversion cycle and reduced Newell's leverage ratio on a sequential basis. While the macroeconomic environment remains choppy, the transformation of our business is clearly underway, which has given us confidence to improve our financial outlook for the year.\"\n\n\nExecutive Summary\n\n\n\nSecond quarter net sales were $2.0 billion, a decline of 7.8 percent compared with the prior year period. Core sales declined 4....