Thu, Jul 25, 5:55 PM (44 days ago)
RPM International Inc. reported net sales of $7.3 billion for the fiscal year ended May 31, 2024, reflecting a 1.1% increase from the previous year. The CPG segment saw a 7.7% rise in sales, driven by strong performance in restoration systems and concrete admixtures. The PCG segment had a modest 2.0% increase, aided by improved pricing and demand in emerging markets. However, the Consumer segment experienced a 2.3% decline due to reduced retailer inventory levels and lower DIY market demand. The SPG segment's sales dropped by 10.9%, impacted by lower volumes in OEM markets and the divestiture of a non-core business. Gross profit margin improved significantly to 41.1%, up from 37.9% the previous year, mainly due to operational efficiencies and better pricing. SG&A expenses increased to 28.8% of net sales, driven by higher variable costs, merit increases, and investments in growth initiatives. The company also recorded $30 million in restructuring expenses related to its MAP 2025 initiative. Net income rose to $589.4 million, with a diluted EPS of $4.56, up from $3.72 the previous year. The effective tax rate was 25.2%. Cash from operating activities more than doubled to $1.12 billion, while cash used for financing activities increased significantly due to debt repayments. Overall, RPM showed strong financial performance with improved margins and a solid cash flow, despite challenges in some segments.