Q2 2024 H.B. Fuller Company Earnings Call Transcript
Key Points
- H.B. Fuller Co (FUL) reported a 10% year-on-year increase in adjusted EBITDA to $157 million, with a 120 basis point expansion in adjusted EBITDA margin to 17.1%.
- The company achieved organic volume growth of more than 3% during the quarter, with volume up in all three global business units.
- H.B. Fuller Co (FUL) completed the acquisition of ND Industries, which is expected to contribute $80 million in sales at a greater than 30% EBITDA margin.
- The company reinitiated its share repurchase program, acquiring 182,000 shares in the second quarter.
- H.B. Fuller Co (FUL) has a robust M&A pipeline and continues to evaluate potential transactions to drive growth and shareholder returns.
- Organic revenue was flat year-on-year as volume growth was offset by reformulation activity and index-based pricing adjustments.
- Currency had a negative impact of 1.7% on revenue, and the strengthening US dollar is expected to have a continued negative impact.
- The hygiene market continued to negatively impact organic sales development for HHC in the Americas region.
- Adjusted selling, general, and administrative expenses were up 9% year-on-year, driven by acquisitions, higher wage inflation, and higher variable compensation.
- The company's net debt to adjusted EBITDA ratio increased from 2.8 times to 3.1 times sequentially, reflecting the acquisition of ND Industries.
Thank you for standing by, and welcome to the H.B. Fuller second-quarter 2024 earnings conference call. (Operator Instructions)
I'd now like to turn the call over to Steven Brazones, Vice President of Investor Relations. You may begin.
Thank you, operator. Welcome to H.B. Fuller second-quarter 2024 investor conference call. Presenting today are Celeste Mastin, President and Chief Executive Officer; and John Corkrean, Executive Vice President and Chief Financial Officer. After our prepared remarks, we will have a question-and-answer session.
Before we begin, let me remind everyone that our comments today will include references to certain non-GAAP financial measures. These measures are supplemental to the results determined in accordance with GAAP. We believe that these measures are useful to investors in understanding our operating performance and to compare our performance with other companies.
Reconciliation of non-GAAP measures to the nearest GAAP measure
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