US – US-based adhesive manufacturer HB Fuller has reported US$941.2 million in net revenue for the third quarter (Q3) of fiscal 2022 (FY22), up by 13.8% year-on-year (YoY) from the corresponding period of last year (FY21).

For the three months to 27 August, the company’s gross profit was US$249.2 million and its adjusted gross profit stood at US$249.8 million.

HB Fuller reported a gross profit margin of 26.5%, an improvement of 280 basis points (bps) from last year.

The company generated a net income of US$46.5 million in the quarter, compared with US$31.6 million in Q3 2021.

Its adjusted earnings before interest, tax, depreciation and amortization (EBITDA) grew by 24.4% to US$137.7 million YoY, while its adjusted EBITDA margin increased by 120bps to 14.6%.

On a year-on-year basis, Hygiene, Health and Consumable Adhesives organic revenue increased 22.9%, Engineering Adhesives organic revenue increased 17.5%, and Construction Adhesives organic revenue increased 6.9%.

HB Fuller President and CEO Jim Owens said: “Our strong organic growth and improved profitability in the third quarter serve as additional proof points that our strategy is working, particularly in light of continued raw material inflation and currency headwinds from the strong dollar.

“Our innovation-driven market share gains and mix shift to a more highly specified product portfolio through innovation and strategic mergers and acquisitions (M&A), coupled with our responsible pricing actions, are delivering significant improvement to our financial results.

“We have very effectively managed both economic and currency headwinds and we remain on track to achieve significant double-digit EPS growth and EBITDA growth at the top end of the range we provided in the first quarter.”

Selling, general and administrative (SG&A) expense was US$161.2 million in the third quarter of fiscal 2022 and adjusted SG&A was US$156.2 million.

Adjusted SG&A as a percent of net revenue increased 100 basis points versus the third quarter of last year.

The increase in SG&A, as a percentage of net revenue, was largely driven by higher variable compensation and higher travel-related expenses following the pandemic-driven slowdown in travel.

For the full year, HB Fuller expects organic revenue growth of between 17% and 18%.

The company has also increased its adjusted EBITDA for FY22 from the previously provided range of US$530 million -550 million to US$540 million-550 million.

Earlier this year, HB Fuller partnered with tape application equipment manufacturer Enimac to support the e-commerce packaging sector.

The companies will combine their market and application experience with ‘advanced’ knowledge of pressure-sensitive adhesive tapes.

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