ATLANTA, US – Newell Brands has announced its first quarter 2021 financial results. “2021 is off to a terrific start, as top line increased 21 percent, normalized operating profit doubled and earnings per share tripled year-over-year during the first quarter, building on the momentum from the back half of 2020. Each of our business units and geographic regions delivered significant sales growth, fueled by consumption, as our supply chain teams operated with excellence and successfully managed broad-based demand surges,” said Ravi Saligram, Newell Brands President and CEO.
“We are still in the early stages of realizing the full potential of our business and see tremendous opportunity for value creation through focused execution of our strategic priorities, including sustaining top line growth, strengthening our brands through insights and innovation, driving omni-channel prowess, unlocking international potential, and expanding distribution, while serving as a force for good in the world.”
Chris Peterson, Chief Financial Officer and President, Business Operations, said, “Significant out-performance on top line, in combination with productivity gains and operating leverage, drove outstanding results in the first quarter.
We made further progress on deleveraging and reducing our cash conversion cycle relative to year-ago levels. Much stronger than anticipated results thus far in 2021 give us confidence to raise our outlook for the full year both on top and bottom lines, despite additional inflationary pressures. We currently forecast core sales growth of 5 to 7 percent and normalized earnings per share of $1.63 to $1.73 for full year 2021.”
Newell Brands: First Quarter 2021 Executive Summary
- Net sales were $2.3 billion, an increase of 21.3 percent compared with the prior year period.
- Core sales grew 20.9 percent compared with the prior year period. Every business unit and major region increased core sales compared with the prior year period.
- Reported operating margin was 8.4 percent compared with negative 74.7 percent in the prior year period. Normalized operating margin was 10.1 percent compared with 6.0 percent in the prior year period.
- Reported diluted earnings per share were $0.21 compared with a $3.02 diluted loss per share in the prior year period.
- Normalized diluted earnings per share were $0.30 compared with $0.09 per share in the prior year period.
- The company redeemed the remaining $94 million of its 3.15 percent senior notes that were scheduled to mature in April 2021.
- The company’s leverage ratio improved to 3.3x at the end of the first quarter from 4.2x in the prior year period and 3.5x at the end of 2020.
- The company increased its 2021 full year net sales outlook to $9.9 billion to $10.1 billion from its previous range of $9.5 billion to $9.7 billion. The company also raised its 2021 full year outlook for normalized earnings per share to $1.63 to $1.73 from its previous range of $1.55 to $1.65.
