Fuller's Revenue and Profit Double in the First Half of the Year

Recently, Fuller Company announced its first-half and second-quarter results this year. The company achieved revenue of US$1.85 billion in the first half of the year, a year-on-year increase of 19.05%; net profit of US$85.55 million, a year-on-year increase of 8.38%. Fuller admitted that the company's significant increase in revenue and profit was mainly due to pricing measures. As a result, all three global business segments posted strong double-digit revenue growth in the first half of the year.

Compared with the same period last year, although Fuller’s overall revenue and net profit both increased in the first half of the year, net profit declined slightly in the second quarter. According to the financial report, the company’s operating income in the second quarter increased by 19.98% year-on-year to $993 million; net profit fell by 3.87% year-on-year to $47.2 million. Fuller said higher raw material and freight costs were offset by higher sales volumes and pricing, but second-quarter adjusted operating costs as a percentage of revenue improved 130 basis points from last year, and gross and adjusted gross margins declined year-over-year . As a result of these factors, net income attributable to Fullerton was $47.2 million in the second quarter, down slightly year over year. Overall, Fuller's performance in the second quarter of 2022 is better. According to the financial report, Fuller’s second-quarter adjusted net profit increased by 20.31% year-on-year to $61.19 million; adjusted earnings before interest, tax, depreciation and amortization (EBITDA) increased by 14% year-on-year to $139 million.

Driven by industrial demand and supply constraints for petrochemicals in the U.S., Fullerton expects raw material and delivery costs to continue to rise, with full-year growth rates of more than 20%. The company is prepared to further increase product prices if necessary. Fullerton expects that the company's full-year EBITDA will be $530-550 million, an increase of 14%-18% from fiscal 2021, and double-digit year-on-year growth in all four quarters; adjusted earnings per share are expected to be $4.10-4.35, An increase of 18%~25% from FY21; working capital as a percentage of revenue is expected to continue to improve during the year, falling below 16% by the end of FY22, with a more normalized level of cash flow generation in the second half.