Press release
Newell Brands Announces Third Quarter 2023 Results
Net Sales Decline 9%; Core Sales Decline 9% Gross Margin Improves Over 100 Basis Points Versus Prior Year Year-to-Date Operating Cash Flow Increases Over
About this update from Newell Brands Inc.
[{"type":"text","content":"\nNet Sales Decline 9%; Core Sales Decline 9%\nGross Margin Improves Over 100 Basis Points Versus Prior Year\nYear-to-Date Operating Cash Flow Increases Over $1.2 Billion Versus Prior Year\nUpdates Outlook for Full Year 2023\n\n\n ATLANTA--(BUSINESS WIRE)--\nNewell Brands (NASDAQ: NWL) today announced its third quarter 2023 financial results.\n\n\nChris Peterson, Newell Brands President and Chief Executive Officer, said, \"Since introducing a new strategy in June, we have been laser focused on implementing the organizational, operational and cultural changes required to strengthen the company's front-end consumer facing capabilities, while harnessing the scale and power of One Newell. We have improved gross margin and strengthened operating cash flow, which were the top two financial priorities we established at the start of the year. The substantial progress we are making gives me great confidence that our new strategy, which focuses on our leading brands in top markets and puts consumer understanding and insights at the center of everything we do, will accelerate the company's performance and drive significant value creation over time, despite a challenging macroeconomic backdrop.\"\n\n\nMark Erceg, Newell Brands Chief Financial Officer, said, \"During the third quarter we improved the structural economics of the business by increasing gross margin both sequentially and versus last year. Year-to-date, we increased operating cash flow by more than $1.2 billion and reduced net debt by nearly $400 million. Based on these strong results, we expect gross margin will continue to improve during the fourth quarter and we have raised our cash flow outlook for the year, even as top line expectations and earnings per share estimates have been tempered.\"\n\n\nThird Quarter 2023 Executive Summary\n\n\n\nNet sales were $2.0 billion, a decline of 9.1 percent compared with the prior year period.\n\n\n\nCore sales declined 9.2 percent compared with the prior year period.\n\n\n\nReported gross margin was 30.3 percent compared with 29.2 percent in the prior year period.\n\n\n\nNormalized gross margin was 31.3 percent compared with 29.6 percent in the prior year period.\n\n\n\nReported operating margin was negative 7.8 percent, including the impact of a $263 million non-cash impairment charge, compared with positive 1.8 percent in the prior year...