Q3 2024 Newell Brands Inc Earnings Call Transcript

Oct 25, 2024 / 01:30PM GMT

Release Date Price: MXN132

Transcript 10-Q8-K

Key Points

Positve

Newell Brands Inc (NWL) reported strong third-quarter results, with performance at the high end or ahead of plan across most key metrics.
The company achieved a fifth consecutive quarter of gross margin improvement, driven by outstanding productivity results that offset inflation.
Normalized operating margin exceeded expectations despite planned higher advertising and promotion (A&P) investments.
Newell Brands Inc (NWL) significantly reduced its cash conversion cycle and deleveraged its balance sheet to under 5 times.
The company raised its full-year outlook for normalized operating margin improvement, normalized earnings per share, and operating cash flow.

Negative

Core sales for the third quarter were down 1.7%, indicating ongoing challenges in achieving positive sales growth.
The outdoor and recreation segment continued to face difficulties, with a year-over-year decline in core sales growth.
The general merchandise market remains down low single digits, impacting Newell Brands Inc (NWL)'s sales performance.
Lower income households are prioritizing spending on basic needs, affecting demand for Newell Brands Inc (NWL)'s products.
The company faces uncertainty in market dynamics and consumer behavior, which could impact future sales growth.

Operator

Good morning, and welcome to Newell Brands third quarter 2024 earnings conference call. (Operator Instructions) Today's conference call is being recorded. A live webcast of this call is available at ir.newellbrands.com.

I will now turn the call over to Joanne Freiberger, VP of Investor Relations. Ms. Freiberger, you may begin.

Joanne Freiberger

Newell Brands Inc - Vice President, Investor Relations

Thank you. Good morning, everyone and welcome to Newell Brands third quarter earnings call. On the call with me today are Chris Peterson, our President and CEO; and Mark Erceg, our CFO.

Before we begin, I'd like to inform you that during today's call, we will be making forward-looking statements which involve risks and uncertainties. Actual results and outcomes may differ materially, and we undertake no obligation to forward-looking statements.

I refer you to the cautionary language and risk factors available in our earnings release, our form 10-K form 10-Q and other SEC filings available on our Investor Relations website for a further

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