Summary of Newell Brands Conference Call Company Overview - Newell Brands is a $7.6 billion company with approximately $900 million in trailing twelve-month EBITDA [4][46] - The company operates 25 brands that account for 90% of sales, with 62% of revenue generated in the US and 38% internationally [4][5] Core Business Segments - Newell's portfolio is divided into three segments: Home and Commercial, Learning and Development, and Outdoor and Recreation [5] - Key brands include Rubbermaid, Graco, Coleman, Sharpie, Papermate, Yankee Candle, and Oster [5] Strategic Initiatives - A new corporate strategy was implemented in February 2023, focusing on capability assessment and operational improvements [6][46] - The strategy aims to enhance consumer understanding, innovation, brand building, and retail expertise [9][10] - Significant changes included a consumer-first global brand management organization and a centralized operating model [11][12] Financial Performance - Gross margins have improved for seven consecutive quarters, reaching 34.4%, a 610 basis point increase [47][48] - The company has seen strong operating cash flow and expects continued value creation [46][47] - Normalized EBITDA growth of over 15% was reported, with a trailing twelve-month EBITDA of $900 million [59] Market Trends and Consumer Insights - Core sales trends have improved, particularly in the Learning and Development segment and international markets, which have shown positive growth for five consecutive quarters [46][47] - The company aims to grow faster than market growth by focusing on innovation and targeting higher-income consumers [66][67] Supply Chain and Operational Efficiency - Newell has reduced its supplier base by approximately 45% since 2020, aiming for further reductions to improve procurement efficiency [51][52] - The global fill rate exceeded 95%, the highest in the company's history, with a significant reduction in customer penalties and shortages [53][54] - The company has invested over $2 billion in capital to automate its 42 manufacturing plants, improving efficiency [42][49] Innovation and Product Development - New product launches include innovations in the Sharpie and Rubbermaid brands, with a focus on higher price point segments [25][34][35] - The company is actively pursuing new market segments, such as wet erase markers and premium candles, to drive growth [27][34] Future Outlook - Newell Brands is positioned for continued growth with a focus on operational excellence, innovation, and market share expansion [46][62] - The company plans to maintain a dividend payout ratio of 30-35% while pursuing high-return internal growth opportunities [61] Additional Insights - The company has resumed purchases from China, particularly in the baby gear sector, while also gaining traction in tariff-advantaged categories [70][71] - Retailers are increasingly shifting towards US manufacturing to mitigate supply chain risks, which Newell is leveraging in its sales strategy [71]

Newell Brands (NWL) Q1 2025 Earnings Call April 30, 2025 09:00 AM ET Company Participants Joanne Freiberger - VP - IRChris Peterson - CEO & PresidentMark Erceg - Chief Financial OfficerLauren Lieberman - Managing DirectorBill Chappell - Managing DirectorFilippo Falorni - Director - Equity ResearchOlivia Tong - Managing Director Conference Call Participants Andrea Teixeira - AnalystSteve Powers - Equity Research AnalystBrian McNamara - MD & Senior Analyst - Consumer Operator Good morning and welcome to the N ...

Newell Brands (NWL) Q1 2025 Earnings Call April 30, 2025 09:00 AM ET Speaker0 Good morning and welcome to the Noel Brands First Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in listen only mode. After a brief discussion by management, we will open the call up for questions. In order to stay within the time scheduled for the call, please limit yourself to one question during the Q and A session. Today's conference call is being recorded. A live webcast of this call i ...