Brady Corporation · NYSE:BRC
Brady — Q1 F2025 Earnings Presentation
18 slides from Brady's earnings presentation, Nov 18, 2024
Slide 1: Brady Corporation F'25 Q1 Financial Results
Brady Corporation F’25 Q1 Financial Results November 18, 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements 2 In this news release, statements that are not reported financial results or other historic information are “forward-looking statements.” These forward-looking statements relate to, among other things, the Company's future financial position, business strategy, targets, p
Slide 3: Q1 F'25 Highlights
Q1 F’25 Highlights 3 Organic sales growth of 3.6%. Sales Growth Americas & Asia organic sales growth of 5.1%. Europe & Australia organic sales growth of 0.7%. Acquisition growth of 9.9%. GPM of 50.3% compared to 51.7% in Q1 of F’24. Gross Profit Margin Gross profit includes purchase accounting adjus
Slide 4: Sales Overview
Sales Overview 4 SALES (millions of USD) $377 $375 $346 $343 $343 $350 $339 $337 $332 $324 $323 $326 $323 $321 $325 $318 $300 $275 $250 $225 Q1 F'22 Q2 F'22 Q3 F'22 Q4 F'22 Q1 F'23 Q2 F'23 Q3 F'23 Q4 F'23 Q1 F'24 Q2 F'24 Q3 F'24 Q4 F'24 Q1 F'25 Organic 7.0% 13.1% 9.0% 9.0% 6.9% 6.3% 1.9% 6.9% 2.7% 1
Slide 5: Gross Profit Margin
Gross Profit Margin 5 GROSS PROFIT & GPM% (millions of USD) $200 51.7% 51.6% 51.6% 52% 50.8% 50.3% 50.4% 50.3% 50.2% $190 50% 48.4% $176 $177 $177 $175 48.2% 48.1% 48.0% $172 $170 48% 47.0% $164 $163 $162 $155 $155 $156 46% $149 $150 44% 42% $125 40% $100 38% Q1 F'22 Q2 F'22 Q3 F'22 Q4 F'22 Q1 F'23
Slide 6: SG&A Expense
SG&A Expense 6 SG&A EXPENSE AND SG&A EXPENSE AS A % OF SALES (millions of USD) $120 35% $110 30.1% 29.7% 29.1% 29.2% 29.0% 28.4% 27.9% 28.3% 28.2% 28.3% 27.9% 30% 27.0% 27.2% $112 $100 $97 $96 $97 $96 $96 $95 $93 25% $93 $92 $91 $90 $91 $90 20% $80 15% $70 $60 10% Q1 F'22 Q2 F'22 Q3 F'22 Q4 F'22 Q1
Slide 7: R&D Expense
R&D Expense 7 R&D EXPENSE AND R&D EXPENSE AS A % OF SALES (millions of USD) $20.0 5.2% 5.5% 5.1% 5.1% 5.0% 4.9% 4.7% 4.7% 4.7% 4.7% $17.7 $18.0 $17.5 $18.9 4.4% 4.4% 4.3% $16.8 4.3% $16.3 4.5% $16.0 $15.8 $15.7 $15.7 $15.4 $14.9 $13.9 $14.0 $13.9 $14.0 3.5% $12.0 2.5% $10.0 $8.0 1.5% Q1 F'22 Q2 F'22
Slide 8: Income Before Income Taxes
Income Before Income Taxes 8 INCOME BEFORE INCOME TAXES (GAAP) (millions of USD) $70 $64.4 $68.2 $63.0 $63.8 $59.4 $58.8 $60 $55.8 $54.0 $51.3 $50.3 $48.5 $50 $44.7 $42.0 $40 $30 $20 $10 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 F'22 F'22 F'22 F'22 F'23 F'23 F'23 F'23 F'24 F'24 F'24 F'24 F'25 Year-on-Y
Slide 9: Net Income & Diluted EPS
Net Income & Diluted EPS 9 NET INCOME (GAAP) (millions of USD) DILUTED EPS (GAAP) $60 $1.20 $1.15 $55.5 $1.05 $1.00 $50.9 $1.00 $0.96 $0.97 $0.97 $49.4 $0.90 $50 $48.1 $47.2 $46.8 $0.81 $0.79 $43.6 $0.78 $0.80 $0.76 $40.1 $41.1 $39.4 $0.67 $0.65 $40 $38.0 $35.0 $0.60 $33.8 $30 $0.40 $20 $0.20 Q1 Q2
Slide 10: Cash Generation
Cash Generation 10 CASH FLOW FROM OPERATING ACTIVITIES (millions of USD) $95 $84.0 $79.3 $72.5 $72.7 $70 $62.3 CASH FLOWS IN Q1 OF F’25: $53.2 Overview: $45 $40.9 $36.1 $27.5 $28.0 $29.4 Cash flow from operating activities was $23.4M in $23.4 Q1 of F’25 vs. $62.3M in Q1 of F’24. $20 ($3.2) Free cash
Slide 11: Net Cash
Net Cash 11 NET CASH (millions of USD) $350 $300 $250 $200 $159 $150 $123 $102 $96 $97 $100 $91 $84 $64 $50 $26 $31 $29 $19 $15 $0 Q1 F'22 Q2 F'22 Q3 F'22 Q4 F'22 Q1 F'23 Q2 F'23 Q3 F'23 Q4 F'23 Q1 F'24 Q2 F'24 Q3 F'24 Q4 F'24 Q1 F'25 STRONG BALANCE SHEET: October 31, 2024 cash = $145.7M. October 31
Slide 12: F'25 Diluted EPS Guidance
F’25 Diluted EPS Guidance 12 GAAP Diluted EPS $4.02 to $4.32 F’25 Adjusted Diluted EPS* $4.40 to $4.70 Guidance Assumptions: Organic sales growth in the low-single digit percentages. Full-year income tax rate of approximately 20%. Foreign currency exchange rates as of October 31, 2024. Depreciation
Slide 13: Americas & Asia
Americas & Asia 13 Q1 F’25 vs. Q1 F’24 (millions of USD) Q1 F’25 SUMMARY: • Revenues increased 10.7% in Q1 of F’25: Q1 F’25 Q1 F’24 Change • Organic growth = + 5.1%. Sales $ 245.4 $ 221.6 10.7% • Fx decrease = (0.2%). • Acquisition = + 7.4% Segment Profit 54.9 49.9 + 10.0% • Divestiture = (1.6%). Se
Slide 14: Europe & Australia
Europe & Australia 14 Q1 F’25 vs. Q4 F’24 (millions of USD) Q1 F’25 SUMMARY: • Revenues increased 19.3% in Q1 of F’25: Q1 F’25 Q1 F’24 Change • Organic growth = 0.7%. Sales $ 131.6 $ 110.4 19.3% • Fx increase = 3.6%. • Acquisition = 15.0% Segment Profit 13.1 16.7 (21.7%) • Organic sales grew 1.1% in
Slide 15: Investor Relations
Investor Relations 15 Brady Contact: Ann Thornton Investor Relations 414-438-6887 Ann_Thornton@bradycorp.com See our website at www.bradycorp.com/investors
Slide 16: Appendix
Appendix GAAP to Non-GAAP Reconciliations
Slide 17: Non-GAAP Reconciliations
Non-GAAP Reconciliations 17 GAAP to NON-GAAP MEASURES (Unaudited; Dollars in Thousands, Except Per Share Amounts) In accordance with the U.S. Securities and Exchange Commission’s Regulation G, the following provides definitions of the non-GAAP measures used in the earnings release and the reconcilia
Slide 18: Non-GAAP Reconciliations
Non-GAAP Reconciliations 18 GAAP to NON-GAAP MEASURES (Unaudited; Dollars in Thousands, Except Per Share Amounts) In accordance with the U.S. Securities and Exchange Commission’s Regulation G, the following provides definitions of the non-GAAP measures used in the earnings release and the reconcilia