Fri, Jul 26, 8:27 PM (43 days ago)
Fortune Brands Innovations, Inc. reported a 6.6% increase in net sales to $2,349.5 million for the quarter ended June 29, 2024, driven by acquisitions but offset by lower international sales and higher customer incentives. Operating income rose by 24.6% to $354.5 million, benefiting from raw material cost deflation and productivity improvements, despite higher selling, general, and administrative expenses. The Water segment saw a 6.1% increase in net sales and an 8.0% rise in operating income, while the Outdoors and Security segments also reported growth. Interest expense increased due to higher floating rate debt balances. The effective tax rate remained steady at 22.2%. The company generated $190.2 million in operating cash flow, down from $503.6 million the previous year, due to increased inventory levels. Cash used in investing activities was $230.2 million, primarily for acquisitions. Financing activities provided $9.7 million, with significant share repurchases and dividends paid. The company remains confident in its liquidity, supported by cash on hand, operating cash flows, and credit facilities.