H.B. Fuller Company (NYSE: FUL) has released its financial results for the first quarter of 2024, revealing some significant changes compared to the previous year. The reported EPS (diluted) was $0.55, while the adjusted EPS (diluted) stood at $0.67, marking a robust 22% year-on-year increase. Net income reached $31 million, and adjusted EBITDA stood at $123 million, up 12% from the previous year. The adjusted EBITDA margin also saw an impressive 160 basis points increase year-on-year, reaching 15.2%.
The company's net revenue for the first quarter of fiscal 2024 was reported at $810 million, showing a minor increase of 0.2% compared to the same period in the previous fiscal year. However, organic revenue experienced a modest decrease of 4.2% year-on-year, primarily due to anticipated pricing changes.
The gross profit margin for the first quarter of fiscal 2024 was reported at 29.5%, with the adjusted gross profit margin at 30.1%, reflecting a substantial 320 basis points increase year-on-year, driven by favorable net pricing, raw material cost impact, and restructuring benefits.
Net working capital, as a percentage of annualized net revenue, decreased by 270 basis points year-on-year, reaching 17.1%. Additionally, the cash flow from operations increased by an impressive $42 million year-on-year, totaling $47 million, driven by reductions in net working capital requirements and improved profitability.
The company's net debt at the end of the first quarter of fiscal 2024 remained essentially flat sequentially versus the fourth quarter, but decreased by $82 million year-on-year, resulting in a reduced ratio of net debt-to-adjusted EBITDA from 2.9x to 2.8x compared to the fourth quarter of fiscal 2023.
Looking ahead, H.B. Fuller reiterated its previously communicated financial guidance for fiscal 2024, with expectations of net revenue growth in the range of up 2% to 6%, adjusted EBITDA in the range of $610 million to $640 million, adjusted EPS (diluted) in the range of $4.15 to $4.45, and operating cash flow between $300 million and $350 million.
Celeste Mastin, President and CEO of H.B. Fuller, expressed satisfaction with the company's performance, highlighting strong adjusted EBITDA growth, margin expansion, and robust cash flow in a dynamic market environment. Mastin also expressed confidence in the company's ability to achieve long-term growth and profitability goals.
As the largest pureplay adhesives company in the world, H.B. Fuller continues to innovate and collaborate with customers across more than 30 market segments in over 140 countries, with the mission to connect what matters and bring world-changing innovations to their end markets.
As a result of these announcements, the company's shares have moved 1.2% on the market, and are now trading at a price of $83.61. Check out the company's full 8-K submission here.
