Key Takeaways Newell targets $220-$250M in annual savings by 2025 under its Project Phoenix restructuring.Q2 sales fell, but the adjusted gross margin improved 110 bps on cost control and restructuring.Management sees 2H25 core sales improving with fresher assortments and better execution.Newell Brands Inc. (NWL) is banking heavily on its multi-year restructuring plan, Project Phoenix, to stabilize its operations and rebuild profitability. The initiative is designed to simplify organizational structures, st ...

Key Takeaways NWL's gross margin rose 80 bps YoY to 35.6% and operating margin gained 10 bps to 10.7% in Q2.Cost savings stem from $2B in automation, tariff pricing actions and overhead reduction.NWL guides 2025 operating margin at 9-9.5% with EPS of $0.66-$0.70 on expected top-line gains.Newell Brands Inc. (NWL) has demonstrated meaningful progress in its margin recovery, even as top-line sales remain pressured. In second-quarter 2025, normalized gross margin rose 80 basis points year over year to 35.6%. T ...

Core Changes in Newell - Newell has undergone significant changes over the past 2.5 years under the leadership of the new CEO, including a comprehensive assessment of its business capabilities and a strategic overhaul [1] - The company evaluated its 11 core capabilities necessary for success in the consumer products sector, identifying weaknesses in half of these areas, which were rated as "red" or worst in class [1] - A new strategy was implemented in June 2023, focusing on clear choices regarding market positioning and competitive advantages [1] Capability Improvement Initiatives - The assessment led to the initiation of a capability improvement project list aimed at enhancing performance in identified weak areas [1] - A new operating model was established, emphasizing the creation of global segments responsible for managing the profit and loss (P&L) [1]

Newell Brands (NWL) FY 2025 Conference September 03, 2025 11:15 AM ET Company ParticipantsChris Peterson - CEO, President & DirectorMark Erceg - CFONoneThe audience who may have known an earlier renewal, what would you say has changed?Chris PetersonAlmost everything is what I would say.NoneOf course.Chris PetersonWhen we got started two point five years ago on this journey, we started to your point with the capability assessment, assessing the 11 core capabilities that are required to win in consumer produc ...

Financial Data and Key Metrics Changes - The company has seen a significant improvement in core sales growth compared to two and a half years ago, although it remains negative this year, it is less negative than in previous years [5] - Gross margin has increased by almost 600 basis points over the past two years, indicating strong financial performance [5] - The net leverage ratio has been reduced, and the balance sheet has improved, contributing to strong cash flow [5] Business Line Data and Key Metrics Changes - The company has established global segments to manage P&L for brands, focusing on brand management and scaling supply chain operations [4] - The Writing business, a key segment, has shown flat category growth this year compared to last year, which is seen as a positive sign [43] Market Data and Key Metrics Changes - The company expects category growth rates to decline by about 2% this year, with no catalysts for improvement in the second half [9] - Lower-income consumers are under pressure, leading to a demand for more value, while high-income consumers remain strong [10][11] Company Strategy and Development Direction - A new strategy was implemented in June 2023, focusing on capability improvement and a new operating model [4] - The company is optimistic about category growth improving next year, driven by a potential decrease in interest rates and positive GDP growth [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the ongoing pressure on consumers, particularly in lower and middle-income brackets, but believes that focusing on value will help navigate the current environment [53] - There is cautious optimism for improved category growth next year, with expectations that the company can outperform the market if it executes well [56] Other Important Information - The company has created a trade expertise center to manage tariff impacts effectively, reducing reliance on Chinese sourcing from 35% to less than 10% [14] - The company has secured $35 million in incremental sales from tariff-advantaged categories, with expectations for further growth next year [21] Q&A Session Summary Question: What drove the change in category growth expectations? - The company reset its guidance to reflect sustained category growth rates of minus 2% for the year, based on first-half performance and lack of consumer catalysts [9] Question: How is the company addressing tariff impacts? - The company has implemented pricing strategies and cost management to offset the $155 million cash impact from tariffs, with pricing fully in place [16][19] Question: What is the outlook for the back-to-school season? - The back-to-school season has shown flat category growth, with no significant price increases observed, indicating a stable market environment [44] Question: What are the expectations for Q4? - Management expects Q4 to be significantly better than Q3 due to stronger innovation, a one-time inventory reduction impact in Q3, and tariff advantages becoming more pronounced [52] Question: How does the company view potential divestitures? - The company does not see a path for divestitures to create value, believing it can win in its current categories, including Outdoor and Rec [72] Question: Will acquisitions be considered in the future? - While near-term acquisitions are unlikely, the company is open to medium-sized acquisitions in the future to create synergies [76] Question: What excites management about the company's future? - Management is excited about the progress made in complexity reduction and the implementation of AI to improve capabilities and drive top-line growth [78]

Core Insights - The analyst has a strong background in equity research and investment analysis, with a focus on the U.S. equity market and consumer staples sector, indicating a belief in the resilience of defensive stocks for long-term investment opportunities [1] - The analyst holds certifications such as FMVA and FPWMP, which enhance their ability to analyze financial statements and build valuation models [1] - Participation in the CFA Research Challenge provided practical experience in equity analysis and industry research, showcasing the analyst's capability to present investment recommendations effectively [1] Company and Industry Focus - The analyst has prepared investment reports across various sectors, including healthcare, consumer staples, and industrials, demonstrating versatility in evaluating companies across different industries [1] - The consumer staples sector is highlighted as a particular area of interest, suggesting that it may present stable investment opportunities due to its defensive nature [1] - The analyst's educational background includes a degree in Finance with a strong academic performance, which supports their analytical capabilities in the investment field [1]

Financial Data and Key Metrics Changes - The company reported net flows of $15.8 billion for FY 2025, representing a 40.4% increase compared to the previous year [2][27] - Funds Under Administration (FUA) grew to a record $112.8 billion, a 28.2% increase [3][28] - Total income reached $324.4 million, reflecting a 27.1% increase year-on-year [3][28] - EBITDA was $163.5 million, with an EBITDA margin of 50.4%, up 3.2% from the previous year [3][28] - Net Profit After Tax (NPAT) increased by 39.8% to CAD 116.5 million [3][28] Business Line Data and Key Metrics Changes - Managed accounts grew by 33.5%, while managed funds increased by 21.9% [4] - Domestic trade volume rose by 28.5%, and international trade volume surged by 121.9% [5] - Ancillary fee income grew by 32.8% [8] Market Data and Key Metrics Changes - The company increased its market share to 8.7%, a 1.1% increase [18] - The platform market is growing at $1.2 trillion with a two-year CAGR of 10.2% [19] Company Strategy and Development Direction - The company aims to continue investing in wealth solutions, wealth tech, insights, and analytics [10][12] - A focus on enhancing digital experiences and user interfaces has been emphasized [12][13] - The company plans to launch new products tailored for high net worth and ultra-high net worth clients [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in future growth, citing strong demand for complex financial advice and a robust pipeline of new advisory relationships [41][42] - The company anticipates maintaining strong net flows similar to the previous year [41][42] - There is a focus on leveraging technology and AI to improve efficiency and service delivery [21][22] Other Important Information - The company declared a final dividend of $0.21 per share, a 50% increase from the previous year [36] - The Rule of 40 score exceeded 77, indicating a strong combination of growth and profitability [36] Q&A Session Summary Question: Can you provide the actual number of flows? - Management indicated that the flows were in the vicinity of about 45% [47] Question: What drove the elevated trading fees? - Management noted that significant tailwinds from the shift to T+1 for U.S. equity settlements and elevated market volatility contributed to increased trading activity [50][51] Question: What is the organic growth rate from existing clients? - Management stated that most firms are experiencing organic growth rates between 15-20% [53] Question: How do you manage the intersection of growth and margin versus investment? - Management emphasized the importance of investing appropriately to maximize efficiencies while also pursuing growth opportunities [61] Question: What is the outlook for revenue margins into FY 2026? - Management expects some continuing trends but noted that transaction fee growth may not replicate the previous year's performance [108]

Financial Data and Key Metrics Changes - Net flows for FY 2025 were $15,800,000,000, a 40.4% increase from the prior corresponding period [2] - Funds under administration (FUA) grew to $112,800,000,000, a 28.2% increase [3] - Total income reached $324,400,000, representing a 27.1% increase [3] - EBITDA was $163,500,000, resulting in an EBITDA margin of 50.4%, a 3.2% increase from the previous year [3] - NPAT surged to CAD116.5 million, a 39.8% increase [3] Business Line Data and Key Metrics Changes - Managed accounts grew by 33.5%, while managed funds increased by 21.9% [4] - Domestic trade volume increased by 28.5%, and international trade volume surged by 121.9% [5] - Ancillary fee income grew by 32.8% [6] Market Data and Key Metrics Changes - The company’s market share increased to 8.7%, up 1.1% [18] - The platform market is growing at $1,200,000,000,000 with a two-year CAGR of 10.2% [18] - There are 7,200,000 Australians with complex financial circumstances seeking advice, with only 10,000 to 11,000 advisors available [19] Company Strategy and Development Direction - The company’s strategy focuses on wealth solutions, wealth tech, insights and analytics, and partnerships [9][10] - Plans to enhance digital capabilities and user experience through a major upgrade to the user interface [12][13] - The company aims to create capacity internally and reduce reliance on third-party systems [21] Management's Comments on Operating Environment and Future Outlook - The company expects strong flows and account growth, with a well-diversified pipeline [44] - Management is optimistic about new offerings and investments in key market segments [45] - The outlook for full net flows is expected to be similar to the previous year, with strong profitability and cash generation [46][47] Other Important Information - The company declared a final dividend that is 50% higher than the previous year, equating to a 90% payout ratio [37] - The company added over 80 employees, with 55% focused on growth initiatives [38] Q&A Session Summary Question: Can you provide the actual number of flows? - The exact number was not disclosed, but it was in the vicinity of about 45% [50] Question: What drove the elevated trading fees? - Significant tailwinds from the shift to T+1 for U.S. equity trading and elevated volatility contributed to increased transaction volumes [52][53] Question: What is the organic growth rate from existing clients? - Most firms are experiencing organic growth rates between 15-20% [55] Question: How do you manage the intersection of growth and margin versus investment? - The company aims to invest appropriately to maximize efficiencies while optimizing opportunities [63] Question: What are the expectations for revenue margins into FY 2026? - Transaction fees are expected to be good, but some one-off benefits from the previous year may not be replicated [104] Question: What is the outlook for operating expenses? - Expected operating expenses are around $190,000,000, excluding any potential impacts from ongoing investigations [75]

Results Presentation FY25 21 August 2025 See wealth differently For personal use only Disclaimer: This document is for general use. Modification of content is prohibited unless you have Netwealth's express prior written consent. Important notice and disclaimer General Information only Information provided is general information presented in a summary format as at 21 August 2025 and is therefore not necessarily complete. This presentation is for informational purposes only and is not to be relied upon as adv ...

Group 1 - Newell Brands' shares are yielding above 5% based on its quarterly dividend of $0.28, with the stock trading as low as $5.55 [1] - Historically, dividends have contributed significantly to the total return of the stock market, exemplified by the iShares Russell 3000 ETF, which showed a 0.6% decrease in share price over twelve years but provided $10.77 per share in dividends, resulting in a total return of 13.15% [1] - Collecting a yield above 5% is considered attractive if it is sustainable, especially in comparison to the average annual total return of about 1.0% when dividends are reinvested [1] Group 2 - Dividend amounts are generally unpredictable and fluctuate with each company's profitability, making historical analysis important for assessing the likelihood of continued dividends [2]