Newell Brands (NASDAQ: NWL) has reported its third-quarter 2024 financial results, indicating a turnaround on track as year-over-year sales have improved sequentially. Here are the key financial metrics and how they have changed compared to the prior year period:
- Net sales were $1.9 billion, a decline of 4.9% compared with the prior year period, with core sales declining 1.7%.
- Reported gross margin increased to 34.9% from 30.3% in the prior year period, and normalized gross margin increased to 35.4% from 30.7%.
- Reported operating margin improved to negative 6.2% from negative 7.8% in the prior year period, while normalized operating margin increased to 9.5% from 7.4%.
- Reported net loss was $198 million compared with $218 million in the prior year period, and normalized net income was $69 million compared with $154 million in the prior year period.
- Normalized EBITDA increased to $250 million from $218 million in the prior year period.
- Reported diluted loss per share was $0.48 compared with $0.53 in the prior year period, and normalized diluted earnings per share were $0.16 compared with $0.37 in the prior year period.
- Year-to-date operating cash flow was $346 million compared with $679 million in the prior year period.
In terms of operating segment results: The Learning & Development segment generated net sales of $717 million, reflecting core sales growth of 4.4%. The Home & Commercial Solutions segment generated net sales of $1.0 billion, reflecting a core sales decline of 2.3%. * The Outdoor & Recreation segment generated net sales of $183 million, reflecting a core sales decline of 16.8%.
The company also provided an update on its organizational realignment, aimed at strengthening its front-end commercial capabilities and unlocking operational efficiencies and cost savings. This includes standing up a cross-functional brand management organization and centralizing certain functions.
Looking ahead, Newell Brands has increased its full-year 2024 outlook for normalized operating margin, normalized earnings per share, and operating cash flow. The company's increased outlook for full-year 2024 operating cash flow now ranges from $500 million to $600 million, up from the previous range of $450 million to $550 million.
These figures demonstrate the company's progress in its turnaround efforts and its continued focus on improving its financial performance. As a result of these announcements, the company's shares have moved 21.7% on the market, and are now trading at a price of $8.73. If you want to know more, read the company's complete 8-K report here.
