Newell Brands (NASDAQ: NWL) has unveiled its financial results for the first quarter of 2024.
Chris Peterson, President and CEO of Newell Brands, expressed satisfaction with the progress made under the new strategy, citing improved core sales performance, doubled normalized operating margins, and increased operating cash flow. Peterson reaffirmed the company’s commitment to driving performance and value creation through strategic initiatives focused on innovation, brand development, and market excellence.
Mark Erceg, Chief Financial Officer, highlighted the positive impact of operationalizing the new corporate strategy, evident in consecutive quarters of robust gross margin expansion driven by productivity gains, favorable product mix, and pricing adjustments. Erceg also noted significant improvements in operating cash flow, historically challenging due to business seasonality, attributing the success to enhanced operational efficiencies.
Key Highlights:
- Net sales amounted to $1.7 billion, marking an 8.4% decrease compared to the prior year, with core sales declining by 4.7%.
- Reported gross margin increased to 30.5%, up from 26.7% in the prior year, while normalized gross margin reached 31.2%.
- Operating margin saw notable improvement, with reported figures reaching 1.0% compared to a negative 2.0% in the prior year, and normalized operating margin at 4.6%.
- Net loss was reported at $9 million, significantly improved from $102 million in the prior year, with normalized net loss at $2 million compared to $26 million previously.
- Operating cash flow surged by $109 million to $32 million, a stark contrast to the prior year’s outflow of $77 million.
- The company maintained its full-year 2024 outlook.
Operating Segment Results:
- The Home & Commercial Solutions segment recorded net sales of $893 million, with reported operating income at $16 million, compared to a loss of $37 million in the prior year.
- The Learning & Development segment reported net sales of $559 million, with operating income at $94 million, up from $72 million in the prior year.
- The Outdoor & Recreation segment generated net sales of $201 million, with reported operating loss at $18 million, a decline from the prior year’s operating income of $13 million.
The first quarter of 2024 reflects Newell Brands’ commitment to executing its strategic initiatives, resulting in notable improvements across key financial metrics and operational segments.
