• Linkdin
Maximize your media exposure with Fibre2Fashion's single PR package  |   Know More

US' Mativ Holdings' reports slight increase in Q3 2024 sales

12 Nov '24
4 min read
US' Mativ Holdings' reports slight increase in Q3 2024 sales
Pic: Mativ

Insights

  • Mativ Holdings, Inc, has reported Q3 2024 sales of $498.5 million, up 0.1 per cent YoY, with adjusted income of $11 million and a gross profit of $93.6 million, up 8 per cent YoY.
  • Filtration & Advanced Materials sales fell 3.2 per cent, while Sustainable & Adhesive Solutions sales rose 2.1 per cent.
  • The net loss was $20.8 million, a significant improvement from $464.3 million loss in 2023.
Mativ Holdings, Inc, a global leader in specialty materials which operates in two segments—Filtration & Advanced Materials and Sustainable & Adhesive Solutions has reported sales of $498.5 million in the third quarter (Q3) for the period ended September 30, 2024, an increase of 0.1 per cent year over year (YoY), and 1.4 per cent on an organic basis.

The company’s adjusted income was $11.0 million. The cost of products sold decreased by 1.6 per cent, resulting in a gross profit of $93.6 million, which is an 8.0 per cent increase from the previous year. Total non-manufacturing expenses were reduced by 15.6 per cent YoY, amounting to $75.4 million. Restructuring and other impairment expenses decreased by 31.3 per cent, totalling $11.2 million, Mativ Holdings said in a press release.

The operating profit of the company was $7.0 million, a significant improvement from the loss of $419.9 million in the same period last year. However, after accounting for interest and other expenses, the net loss from continuing operations was $20.8 million, a substantial reduction from the $464.3 million loss reported in 2023.

Adjusted earnings per share (EPS) was $0.21, and adjusted EBITDA was $60.8 million in Q3. Generally accepted accounting principles (GAAP) operating profit margin of the company improved materially compared to the prior year and adjusted EBITDA margin increased 110 basis points.

Adjusted EBITDA was up by 10 YoY, primarily driven by improved manufacturing performance, lower SG&A and distribution expenses, partially offset by lower volumes in advanced films, and less favourable mix.

Filtration & Advanced Materials (FAM) segment sales were $189.6 million, down 3.2 per cent versus the prior year period. Sustainable & Adhesive Solutions (SAS) segment sales reached $308.9 million, up by 2.1 per cent, and 4.4 per cent on an organic basis, versus the prior year period, as higher volumes across all end-markets and higher selling prices were partially offset by sales associated with closed and divested plants.

“We saw meaningful increases in volume and profitability in filtration and our overall SAS segment during the third quarter, with SAS segment adjusted EBITDA increasing almost 20 per cent year over year. This was somewhat offset by results in Advanced Films, which were impacted by automotive and construction end markets. As such, we have launched a turnaround effort specific to advanced films focused on demand generation, operational performance and increased customer and end market diversification. This turnaround effort will be similar to the approach we used for healthcare throughout 2023, which year-to-date, resulted in above-market sales growth of more than 5 per cent and materially improved profitability versus the same period in 2023,” commented Julie Schertell, chief executive officer (CEO) of Mativ Holdings.

“Given the prevailing macro-economic conditions and the slow pace of demand recovery, we continue to prioritize those things that we can control and execute on actions to mitigate external market factors, such as the $20 million reduction in non-operating cost announced earlier this year. Additionally, we are increasing capacity in our growth categories of filtration, specialty tapes, release liners and medical films, while at the same time reducing cost and optimizing our supply chain by reducing our plant footprint from 48 sites at the time of the merger to 35 sites today and our warehousing footprint by more than 25 per cent. These actions reduce cost and complexity and support sustained margin improvements as demand returns,” added Schertell.

9 months (9M) financials

For the nine months (9M) period, Mativ Holdings reported net sales of $1,522.5 million, a decrease of 3.3 per cent compared to the same period in 2023. The cost of products sold also decreased by 5.2 per cent YoY, resulting in a gross profit of $286.5 million, which is a 6.2 per cent increase from the previous year. Total non-manufacturing expenses were reduced by 6.7 per cent YoY, amounting to $245.4 million. Despite these improvements, the company faced significant challenges, including a restructuring and other impairment expense of $37.4 million in this period, stated the press release.

Consequently, the operating profit was $3.7 million, a notable improvement from the loss of $411.7 million in the same period last year. However, after accounting for interest and other expenses, the net loss from continuing operations was $50.2 million, a substantial reduction from the $494.1 million loss reported in 9M period 2023.

Fibre2Fashion News Desk (SG)

Leave your Comments

Esteemed Clients

Woolmark Services India Pvt. Ltd.
Weitmann & Konrad GmbH & Co. KG
VNU Exhibitions Asia
USTER
UBM China (Shanghai)
Tuyap Tum Fuarcilik Yapim A.S.
TÜYAP IHTISAS FUARLARI A.S.
Tradewind International Servicing
Thermore (Far East) Ltd.
The LYCRA Company Singapore  Pte. Ltd
Thai Trade Center
Thai Acrylic Fibre Company Limited
X
Advanced Search