On November 17, 2023, Matthews International Corp (MATW, Financial) released its 8-K filing, announcing its financial results for the fourth quarter and fiscal year ended September 30, 2023. The company reported a consolidated sales increase of $23.1 million, or 5.0%, in the fourth quarter, with the Industrial Technologies segment's sales exceeding $500 million for the fiscal year, a significant jump from $335.5 million in FY2022.
Financial Performance Highlights
For the fourth quarter, MATW's net income attributable to the company was $17.7 million, or $0.56 per diluted share, compared to a net loss of $81.0 million, or $2.63 per diluted share, in the same quarter of the previous year. This remarkable improvement was partly due to the absence of a goodwill impairment charge that impacted the prior year's results. Adjusted EBITDA for the quarter was $61.9 million, up from $55.9 million in the prior year, marking a 10.7% increase.
For the fiscal year 2023, MATW's consolidated sales reached $1.88 billion, a 6.7% increase from the previous year. The net income attributable to MATW for the year was $39.3 million, or $1.26 per diluted share, a significant recovery from a net loss of $99.8 million, or $3.18 per diluted share, in fiscal 2022. Adjusted EBITDA for the year was $225.8 million, a 7.3% increase from the previous year's $210.4 million.
Segment Performance and Outlook
The Industrial Technologies segment was a standout performer, with sales growth driven by strong demand for energy storage solutions. The Memorialization segment also reported stable sales and increased adjusted EBITDA, despite a decline in U.S. deaths. The SGK Brand Solutions segment saw improved operating performance due to recent cost reduction actions, although it faced challenges in the European market.
Looking ahead to fiscal 2024, MATW expects continued growth in sales and adjusted EBITDA. President and CEO Joseph C. Bartolacci commented,
With respect to fiscal 2024, we expect another year of consolidated growth in sales and adjusted EBITDA. We continue to have a high level of confidence in the long-term growth opportunities for each of the segments, particularly our Industrial Technologies segment."
Financial Statements Summary
The condensed consolidated statements of income showed a gross profit of $150.8 million for Q4 FY2023, with a gross margin of 31.4%. Selling and administrative expenses decreased by 8.2% compared to the same quarter last year. The operating profit for Q4 was $26.3 million, a significant improvement from the operating loss in the same period last year.
For the fiscal year, the gross profit was $577.7 million with a gross margin of 30.7%. The operating profit for the year was $88.1 million, a notable recovery from the operating loss in fiscal 2022.
Matthews International Corp's financial position remains solid, with a focus on reducing net leverage and managing working capital effectively. The company's performance in the fourth quarter and the full fiscal year reflects its resilience and strategic focus on growth areas, particularly in the Industrial Technologies segment.
For more detailed financial information and the full earnings report, investors and interested parties can access the webcast and conference call hosted by Matthews International Corp.
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Explore the complete 8-K earnings release (here) from Matthews International Corp for further details.
