Newell Brands Inc. has recently released its 10-K report, revealing a comprehensive overview of its business operations and financial performance. The company, founded in 1903 and based in Atlanta, Georgia, operates in three segments: Home and Commercial Solutions, Learning and Development, and Outdoor and Recreation. Newell Brands boasts a strong portfolio of well-known brands, including Rubbermaid, Sharpie, Graco, Coleman, and Yankee Candle, selling its products in over 150 countries worldwide. The company's strategic focus includes driving improvement in front-end capabilities, disproportionately investing in profitable brands and key geographies, leveraging its scale for cost savings, and transitioning to a high-performance organization.
In 2024, Newell Brands reported a 6.8% decrease in net sales compared to the previous year, amounting to $7.582 billion. The decline was attributed to soft global demand, net distribution losses, and product line exits, partially offset by pricing strategies to counter inflation and currency movements. Gross profit saw an 8.3% increase to $2.548 billion, with gross margin improving to 33.6% from 28.9% in 2023. This improvement was driven by pricing, productivity, and lower restructuring-related charges, although changes in foreign currency exchange rates unfavorably impacted gross profit by $121 million.
The company reported an operating income of $67 million in 2024, a significant improvement from the operating loss of $85 million in the previous year. However, Newell Brands incurred a loss before income taxes of $260 million, a notable improvement from the $543 million loss in 2023. The company recorded a net loss of $216 million for the year, marking a 44.3% decrease from the previous year's net loss of $388 million. The diluted loss per share also decreased, from $0.94 in 2023 to $0.52 in 2024.
Newell Brands also addressed several recent developments, including the impact of geopolitical conflicts, tariffs exposure, organizational realignment plans, and impairment charges on indefinite-lived intangible assets. The company undertook debt redemption and issuance activities, repaying outstanding senior notes and completing a registered public offering and sale of new senior notes.
The 10-K report provides a detailed insight into Newell Brands' financial performance, strategic initiatives, and the challenges and opportunities it faces in the global consumer goods market. The market has reacted to these announcements by moving the company's shares 0.6% to a price of $7.05. For the full picture, make sure to review Newell Brands's 10-K report.
