H. B. Fuller Company · NYSE:FUL
H. B. Fuller — Q4 2023 Earnings Presentation
12 slides from H. B. Fuller's earnings presentation, Jan 18, 2024
Slide 1: Fourth Quarter 2023 Conference Call
Title Slide Fourth Quarter 2023 Conference Call January 18, 2024 ® 2024 H.B. Fuller
Slide 2: Disclosure: Safe Harbor Statement and Regulation G
Disclosure Safe Harbor Statement Certain matters discussed today may be considered forward-looking statements within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such s
Slide 3: Fourth Quarter Highlights
Fourth Quarter Highlights Adjusted Gross Margin 31.3% Adjusted EBITDA $173M Adjusted EPS $1.32 Up 510 bps YOY Up 22% YOY Up 27% YOY Up 130 bps Sequentially Up 32% YOY on 13-Week Basis Up 37% YOY 13-Week Basis Strong execution drove strong profit growth, record margins, and outstanding cash flow Subs
Slide 4: Global Business Unit Update
Global Business Unit Update Health, Hygiene, and Engineering Construction Consumable Adhesives Adhesives Adhesives • Organic revenue down 7.5% YOY • Organic revenue down 1.4% YOY • Organic revenue up 5.0% YOY • Adjusted EBITDA margin • Adjusted EBITDA margin • Adjusted EBITDA margin expanded 690 bas
Slide 5: Regional Perspective
Regional Perspective AMERICAS • Organic revenue development improved significantly sequentially, from down 13% YOY in Q3 to down 6% YOY in Q4 • Substantial improvement in North America volumes versus third quarter, while remaining weak in Latin America EIMEA • Organic revenue was flat YOY • Modest o
Slide 6: Q4 Financial Summary
Q4 Financial Summary Margin Expansion Continued • Net revenue declined 5.8% YOY; on a comparable 13- week basis, net revenue was up 1.2% YOY • Organic revenue was down 3.5% YOY • Adjusted gross profit margin was 31.3%, up 510 basis points YOY • Adjusted SG&A was effectively flat YOY • Adjusted EBITD
Slide 7: FY 2024 Financial Guidance Update
FY 2024 Financial Guidance Update Revenue • Expect net revenue to be up between 2% and 6% and organic revenue to be up between flat and +3% YOY • Volume expected to be up low to-mid-single digits and pricing down low single digits YOY • Expect Adjusted EBITDA to be in the range of $610M to $640M, in
Slide 8: Next Level Portfolio Management
Next Level Portfolio Management Driving strong EBITDA margin expansion by proactively managing our portfolio and capital allocation • Successfully transformed our portfolio over the past 15 years • Concentrated within the highly specified portions of our market segments • Next level portfolio manage
Slide 9: Top Growth and Profit Improvement Opportunities
EBITDA MARGIN Top Growth and Profit Improvement Opportunities MARKET GROWTH RATE $1B $2B Bubble Size = Size of market ® 2024 H.B. Fuller
Slide 10: Portfolio Recasting
Portfolio Recasting Growth Category Leverage Category 15 Market Segments 16 Market Segments Overview Overview • 15 of our market segments, across all 3 GBU’s • Consists of 16 market segments, across all 3 GBU’s • Focused on quickly growing high margin segments • Focused on maximizing operating effic
Slide 11: Summary
Summary Entering 2024 with confidence, optimism, and momentum • Successfully executing our strategy to deploy capital to the highest return opportunities • Innovating with speed to deliver solutions for our customers • Driving efficiencies throughout our manufacturing footprint • Achieving significa
Slide 12: Regulation G Reconciliations
Regulation G Reconciliations Please refer to the Company’s latest earnings release for all Regulation G reconciliations by clicking here ® 2024 H.B. Fuller