Newell Brands sees big results
Newell Brands is fresh off its recent merger and recently announced a new strategic growth plan that aims to streamline its portfolio and invest more in certain areas.
But right now, the numbers look promising as well. The third quarter saw a net sales jump of 158.5% thanks to the impact of the Jarden acquisition.
Net sales totaled $3.95 billion last quarter, with core sales growth of 3.0%, while net income of $186.5 million was up from last year's $134.2 million. The operating income from the Jarden business more than offset the expenses related to the transaction, including inventory step-up, increased amortization of intangibles and increased interest expense.
“We delivered very good performance in the third quarter while simultaneously driving substantial organization and portfolio change,” said Newell Brands CEO Michael Polk. “Our third quarter Writing, Baby, Food, and Appliances growth was once again very strong, resulting in competitive levels of quarterly core sales growth and leading levels year to date. Our strong savings and cost synergies programs are now in full flight, which when coupled with growth in the underlying business are driving exceptional normalized earnings per share and operating cash flow growth. With very strong year to date results, we have raised our 2016 guidance for both core sales growth and normalized earnings per share into the top half of our previous 2016 guidance ranges.”
For the full year, reported net sales for 2016 are projected to grow between 122.5% and 128.0%.
Additionally, the company is gearing up for the implementation of its new Growth Game Plan, which will be effective Jan. 1, 2017.
“Newell Brands is an exciting new company with a portfolio of leading brands that make life better for hundreds of millions of consumers every day where they Live, Learn, Work, and Play,” said Polk. “Our new strategy, the Growth Game Plan, is designed to accelerate performance and deliver leading levels of growth and returns. We have established a clear set of investment priorities, strengthened the portfolio by making sharp choices that we are decisively driving into action, and have begun to reset the organization for growth by transforming the company from a holding company to an operating company while simultaneously extending our design, innovation, ecommerce, and brand development capabilities. This Growth Game Plan algorithm has a strong and proven track record, and the combination of Newell Rubbermaid and Jarden creates a unique opportunity to reapply this transformative value creation formula across a broader set of categories and geographies.”