H. B. Fuller Company · NYSE:FUL
H. B. Fuller — Q1 2024 Earnings Presentation
21 slides from H. B. Fuller's earnings presentation, Mar 28, 2024
Slide 1: First Quarter 2024 Conference Call
Title Slide First Quarter 2024 Conference Call March 28, 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: First Quarter Highlights
First Quarter Highlights Adjusted EBITDA $123M Adjusted EBITDA Margin 15.2% Adjusted EPS $0.67 Up 12% YOY Up 160 bps YOY Up 22% YOY First quarter results largely consistent with our expectations Continue to proactively respond to changing business dynamics to drive strong adjusted EBITDA growth, mar
Slide 4: Global Business Unit Update
Global Business Unit Update Health, Hygiene, and Engineering Construction Consumable Adhesives Adhesives Adhesives • Organic revenue down 9% YOY • Organic revenue down 2% YOY • Organic revenue up 10% YOY • Hygiene drove decline in HHC • Diversification of portfolio resulted • Absence of customer des
Slide 5: Regional Perspective
Regional Perspective AMERICAS • Organic revenue declined 2% YOY • Driven by lower HHC organic revenue and adversely impacted by a spillover of 2023 destocking activity • EA and CA combined achieved organic revenue growth of more than 4 percent YOY in the Americas region EIMEA • Organic revenue decli
Slide 6: Q1 Financial Summary
Q1 Financial Summary Continued Margin Expansion and Adjusted EBITDA Growth • Net revenue was up 0.2% YOY • Organic revenue was down 4.2% YOY, primarily due to pricing • Adjusted gross profit margin was 30.1%, up 320 basis points YOY, reflecting net price and raw material cost actions and restructuri
Slide 7: FY 2024 Financial Guidance Update
FY 2024 Financial Guidance Update Revenue • Expect net revenue to be up 2% to 6% YOY and organic revenue to be in the range of flat to up 3% Adjusted EBITDA • Expect Adjusted EBITDA to be in the range of $610M to $640M, increasing 5% to 10% YOY Adjusted EPS • Expect Adjusted EPS to be in the range o
Slide 8: H.B. Fuller Customer Innovation Awards
“As the market leader in innovation, we have the privilege of collaborating with some of the most exciting and forward- thinking companies in the marketplace” H.B. Fuller Customer – Celeste Mastin, President and CEO Innovation Awards LinkedIn Instagram Facebook
Slide 9: Summary
Summary Confident in our ability to achieve long-term growth and profitability goals • Off to a good start to the year • Team is executing well in challenging environment, demonstrating discipline and drive • On track for another year of strong profit growth, continued margin expansion, and improved
Slide 10: Q&A Session
Q&A Session ® 2024 H.B. Fuller
Slide 11: Regulation G Reconciliations
Regulation G Reconciliations H.B. FULLER COMPANY AND SUBSIDIARIES REGULATION G RECONCILIATION In thousands, except per share amounts (unaudited) Three Months Ended March 2, March 4, 2024 2023 Net income attributable to H.B. Fuller $ 30,991 $ 21,889 Adjustments: Acquisition project costs1 2,043 2,235
Slide 12: Regulation G Reconciliations: Segment Financial Information
Regulation G Reconciliations H.B. FULLER COMPANY AND SUBSIDIARIES SEGMENT FINANCIAL INFORMATION In thousands (unaudited) Three Months Ended March 2, March 4, 2024 2023 Net Revenue: Hygiene, Health and Consumable Adhesives $ 367,693 $ 383,528 Engineering Adhesives 328,766 333,067 Construction Adhesiv
Slide 13: Regulation G Reconciliations
Regulation G Reconciliations H.B. FULLER COMPANY AND SUBSIDIARIES REGULATION G RECONCILIATION In thousands, except per share amounts (unaudited) Three Months Ended March 2, March 4, 2024 2023 Income before income taxes and income from equity method investments $ 37,782 $ 30,469 Adjustments: Acquisit
Slide 14: Regulation G Reconciliations
Regulation G Reconciliations H.B. FULLER COMPANY AND SUBSIDIARIES REGULATION G RECONCILIATION In thousands (unaudited) Three Months Ended March 2, March 4, 2024 2023 Net revenue $ 810,419 $ 809,183 Gross profit $ 239,237 $ 214,809 Gross profit margin 29.5 % 26.5 % Adjustments: Acquisition project co
Slide 15: Regulation G Reconciliations
Regulation G Reconciliations H.B. FULLER COMPANY AND SUBSIDIARIES REGULATION G RECONCILIATION In thousands (unaudited) Hygiene, Health Three Months Ended: and Consumable Engineering Construction Corporate H.B. Fuller March 2, 2024 Adhesives Adhesives Adhesives Total Unallocated Consolidated Net inco
Slide 16: Regulation G Reconciliations
Regulation G Reconciliations H.B. FULLER COMPANY AND SUBSIDIARIES REGULATION G RECONCILIATION In thousands (unaudited) Hygiene, Health Three Months Ended: and Consumable Engineering Construction Corporate H.B. Fuller March 4, 2023 Adhesives Adhesives Adhesives Total Unallocated Consolidated Net inco
Slide 17: Regulation G Reconciliations: Net Revenue Growth
Regulation G Reconciliations H.B. FULLER COMPANY AND SUBSIDIARIES SEGMENT FINANCIAL INFORMATION NET REVENUE GROWTH (DECLINE) (unaudited) Three Months Revenue growth versus 2023 Ended March 2, 2024 Price (3.3 )% Volume (0.9 )% Organic Growth12 (4.2 )% M&A 5.0 % Constant currency 0.8 % F/X (0.6 )% Tot
Slide 18: Regulation G Reconciliations
Regulation G Reconciliations H.B. FULLER COMPANY AND SUBSIDIARIES REGULATION G RECONCILIATION In thousands (unaudited) Trailing Twelve Three Months Ended Months15 Ended Year Ended September 2, December 2, March 2, March 2, December 2, June 3, 2023 2023 2023 2024 2024 2023 Net income attributable to
Slide 19: Regulation G Reconciliations
Regulation G Reconciliations H.B. FULLER COMPANY AND SUBSIDIARIES REGULATION G RECONCILIATION In thousands (unaudited) December 2, March 2, 2024 2023 March 4, 2023 Total debt $ 1,830,797 $ 1,838,431 $ 1,873,489 Less: Cash and cash equivalents 165,249 179,453 125,482 Net debt16 $ 1,665,548 $ 1,658,97
Slide 20: Regulation G Reconciliations
Regulation G Reconciliations 1 Acquisition project costs include costs related to integrating and accounting for acquisitions. 2 Organizational realignment includes costs incurred as a direct result of the organizational realignment program, including compensation for employees supporting the progra
Slide 21: Regulation G Reconciliations
Regulation G Reconciliations 11 Adjusted selling, general and administrative expenses is a non-GAAP financial measure. Adjusted selling, general and administrative expenses is defined as selling, general and administrative expenses excluding the specific adjustments shown above. The table above prov