By: ICN Bureau
Last updated : June 25, 2021 7:52 am
Based on current assumptions, full year 2021 revenue growth is anticipated to be in the low double-digits versus 2020
H.B. Fuller Company's second quarter ended May 29, 2021 reported net revenue of $828 million, an increase of 22.7% compared with the second quarter of 2020.
Foreign currency exchange rates favorably impacted revenue by 3.9%. Organic revenue, which excludes impacts from foreign currency translation, increased 18.8% versus last year, with organic growth in all three Global Business Units (GBUs) including strong, double-digit growth in Engineering Adhesives and Construction Adhesives. Organic revenue also significantly increased by 9.5% when compared with the non-COVID impacted second quarter of 2019, with strong organic growth in all three GBUs.
Gross profit was $218 million. Adjusted gross profit of $219 million increased 18% versus the same period last year. Adjusted gross profit margin declined by 120 basis points year over year as higher sales volume and pricing gains were offset by higher raw material costs.
As a result of these factors, net income attributable to H.B. Fuller in the quarter was $49 million, or $0.90 per diluted share.
“H.B. Fuller did an outstanding job supporting customers during the quarter, and we delivered another quarter of strong sales and earnings growth,” said Jim Owens, H.B. Fuller president and chief executive officer.
At the end of the second quarter of fiscal 2021, the company had cash and equivalents of $70 million and total debt equal to $1,712 million.
Based on current assumptions, full year 2021 revenue growth is anticipated to be in the low double-digits versus 2020.
The company expects raw material cost increases to exceed 10% on a full year basis versus 2020, with the most significant margin headwinds expected in the third quarter.
Given these assumptions, the company’s prior outlook for full year adjusted EBITDA in the range of $455 million to $475 million remains unchanged. This reflects adjusted EBITDA growth of 12% to 17% versus 2020, which is supported by share gains, on-going recovery in global industrial production, pricing actions balancing higher input costs, and benefits from the company’s operational improvement projects.