Newell Brands(US:NWL)2025-08-21 00:17Financial 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]