Newell Brands has announced its third quarter 2022 financial results. The highlights include:

  • Net sales were $2.3 billion, a 19.2% decline compared with the prior year period, including the year over year impact from the sale of the Connected Home & Security (CH&S) business at the end of the first quarter 2022.
  • Core sales declined 10.8% compared with the prior year period. One of seven business units increased core sales compared with the prior year period.
  • The Learning & Development segment generated net sales of $751 million compared with $869 million in the prior year period, reflecting core sales decline of 9.9% and the impact of unfavorable foreign exchange. Core sales were down in the Writing business unit.
  • Reported operating margin was 1.6 %, including the impact of a $148 million non-cash impairment charge, compared with 10.1% in the prior year period. Normalized operating margin was 10.2% compared with 11.4% in the prior year period.
  • Reported diluted earnings per share were $0.07 compared with $0.44 per share in the prior year period.
  • Normalized diluted earnings per share were $0.53 compared with $0.54 per share in the prior year period.
  • The company strengthened its financial flexibility and refinanced its unsecured revolving credit facility as well as its senior notes due April 2023 (April 2023 notes). In September, the company issued $1.0 billion of senior notes and in October, used the net proceeds, together with available cash, to redeem the April 2023 notes.
  • The company’s leverage ratio was 3.9x at the end of the third quarter versus 3.1x in the prior year period and 3.0x at the end of 2021.
  • The company updated its full year 2022 net sales and normalized earnings per share outlook to $9.35 billion to $9.43 billion and $1.56 to $1.61, respectively.

“Following strong performance over the first half of the year, results decelerated in Q3, reflecting a tough operating environment as many retailers rightsized their inventory positions, inflationary pressure on both the consumer and our business, as well as the impact of a stronger dollar,” said Ravi Saligram, Newell Brands CEO. “We expect economic uncertainty and external disruptions to persist in the near-term and are staying agile, as we adjust our playbook to this environment, while taking decisive actions to maximize profits and cash. We remain confident in the strength of our brands and our ability to drive sustainable and profitable growth over the long term.”

Outlook for Fourth Quarter and Full Year 2022

The company initiated its outlook for fourth quarter 2022 and updated its full year 2022 outlook.

Q4 2022 Outlook
Net Sales $2.18 to $2.26 billion
Core Sales 9% to 12% decline
Normalized Operating Margin 5.1% to 6.5%
Normalized EPS $0.09 to $0.14
Previous Full Year 2022 Outlook Updated Full Year 2022 Outlook
Net Sales $9.37 to $9.58 billion $9.35 to $9.43 billion
Core Sales 2% to 4% decline 3% to 4% decline
Normalized Operating Margin 10.0% to 10.5% 10.0% to 10.3%
Normalized EPS $1.56 to $1.70 $1.56 to $1.61

To view the full results, visit the Newell Brands website.

Source: Newell Brands