On October 25, 2023, Fortune Brands Innovations Inc (FBIN, Financial) announced its third quarter 2023 results. The company reported Q3 2023 sales of $1.3 billion, a 5% increase over Q3 2022. However, organic sales were $1.1 billion, a decrease of 4% versus Q3 2022. The company's earnings per share (EPS) for Q3 2023 were $1.07, a decrease of 2% compared to the same period last year. EPS before charges/gains were $1.19, an increase of 3% versus Q3 2022.
Financial Performance
FBIN's operating income for Q3 2023 was $196.5 million, a 2% increase from the previous year. The operating margin was 15.6%, a decrease of 50 basis points from Q3 2022. The company's net debt stood at $2.4 billion, with a net debt to EBITDA before charges/gains ratio of 2.6x. As of the end of Q3 2023, the company had cash of $453.4 million and an amount available under its revolving credit facility of $1.09 billion.
Segment Performance
Water Innovations sales increased primarily due to the Emtek and Schaub acquisition, while Outdoors sales decreased due to lower sales volumes in the door business. Security sales increased, driven by the U.S. and Canadian Yale and August residential smart locks acquisition, increased distribution, price, and continued growth in the commercial safety and international businesses.
Annual Outlook
The company updated its full-year 2023 guidance to reflect current expectations. The revised financial guidance continues to reflect the company's expectation of outperformance, both organically and from recent acquisitions, as well as the impact from the dynamic external environment.
FBIN's Chief Financial Officer, David Barry, stated,
As we position Fortune Brands for future shareholder value creation opportunities, we continue to prioritize above-market sales growth, margin preservation and enhancement and cash generation, and our financial results and expectations reflect our commitment to these priorities."
Explore the complete 8-K earnings release (here) from Fortune Brands Innovations Inc for further details.
