Jarden merger benefits Newell in Q2
Newell Brands Inc. posted its second-quarter results, which pointed to strong synergies from the Jarden merger and growth in its key businesses.
“We are pleased to report a very good quarter, our first as Newell Brands," said CEO Michael Polk. "Our results benefited from the combination with Jarden and strong top line growth in a number of key businesses, including Writing, Baby, Food & Beverage, Yankee Candle and Appliances. Increased investment in consumer-driven innovation and advertising and promotion helped drive broad-based market share gains on our strategic businesses and in our priority geographies. Gross margin and operating cash flow were on plan, and we believe we are well positioned to achieve our full-year financial outlook."
Net sales for the quarter were up 147.2% to $3.86 billion, more than double the previous year's $1.56 billion. Of course, that includes $2.22 billion in net sales from the acquired Jarden business.
Meanwhile, core sales grew 5.0%, though reported operating income was $137.7 million compared to $214.7 million, largely due to transaction-related costs. However, normalized operating income increased from $249.4 million to $607.9 million.
Reported net income was $135.2 million, down from the previous year's $148.5 million. However, normalized net income rose from $174.5 million to $349.2 million.
“We are making good progress on the integration of the legacy Newell Rubbermaid and Jarden businesses," added Polk. "A number of work streams are in full flight and we are confident in our plans to deliver both the savings associated with Project Renewal and the $500 million in cost synergies expected over the next four years related to the Jarden transaction. Importantly, the strategic analysis critical to re-shaping our priorities and investment choices is well underway. This work has increased our confidence in our potential to consistently deliver leading levels of value creation for our shareholders and has heightened our excitement about the future of Newell Brands.”