H. B. Fuller Company · NYSE:FUL
H. B. Fuller — Q3 2023 Earnings Presentation
12 slides from H. B. Fuller's earnings presentation, Sep 28, 2023
Slide 1: Third Quarter 2023 Conference Call
Title Slide Third Quarter 2023 Conference Call September 28th, 2023 ® 2023 H.B. Fuller
Slide 2: Disclosure
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: Third Quarter Highlights
Third Quarter Highlights Adjusted Gross Margin Adjusted EBITDA Margin Operating Cash Flow Up 350 bps YOY Up 270 bps YOY Up $50M YOY Up 100 bps Sequentially Up 140 bps Sequentially Third quarter EBITDA margin expansion was particularly strong, continuing trend Achieved double-digit percentage growth
Slide 4: Global Business Unit Update
Global Business Unit Update Health, Hygiene, and Engineering Construction Consumable Adhesives Adhesives Adhesives • Organic revenue down 10.5% • Organic revenue declined 3.3% • Organic revenue declined 9.4% • Adjusted EBITDA margin • Adjusted EBITDA margin • Adjusted EBITDA margin increased 270 bas
Slide 5: Regional Perspective
Regional Perspective Americas • Organic revenue decreased 13% YOY • Customer destocking in HHC were notably outsized in North America relative to the rest of the world EIMEA • Organic revenue decreased 6% YOY • Driven by weaker demand in packaging and construction related market segments Asia-Pacifi
Slide 6: Strategic M&A Update
Strategic M&A Update Health, Hygiene, and Engineering Construction Consumable Adhesives Adhesives Adhesives Independently owned Restructuring actions are expected Performance is exceeding manufacturer and filler of to result in on-going annualized cost expectations sprayable industrial adhesives sav
Slide 7: Q3 Financial Summary
Q3 Financial Summary Strong Margin Expansion Continued • Organic revenue declined 7.4% YOY, driven by principally by HHC customer destocking actions • Adjusted gross profit margin was 30.0%, up 350 basis points YOY • Adjusted SG&A was up slightly YOY, driven mainly by acquisitions • Adjusted EBITDA
Slide 8: FY 2023 Financial Guidance Update
FY 2023 Financial Guidance Update Revenue • Now expect net revenue to be between $3.50B and $3.55B • Now expect organic sales to decline between 4.5% and 5.5% YOY Adjusted • Now expect adjusted EBITDA to be in the range of $580M and $590M, representing growth EBITDA of between 9% and 11% YOY Net Int
Slide 9: Summary
Summary Executing Margin Expansion Strategy • Driving the business to a higher profit profile as evidenced by our gross margin and adjusted EBITDA margin performance • Strategy is to be recognized as the imperative ingredient to our customers success by creating valuable and sustainable solutions, u
Slide 10: Appendix
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Slide 11: 2023 M&A Collection | Balance Across the Matrix
2023 M&A Collection | Balance Across the Matrix Sanglier Limited Commercial Expansion Consolidation • Expands innovation capabilities in the Construction Adhesives and Engineering Adhesives businesses Current Region • Added sprayable (aerosol and canister) capabilities Adhezion Beardow Beardow Adams
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 ® 2023 H.B. Fuller 12