Fortune Brands Reports 2021 GrowthFebruary 4th, 2022 by Chris Collier
Fortune Brands Home & Security Inc., a home and security products company, announced full-year financial results for 2021, which include $7.7 billion in sales, an increase of approximately 26% over 2020. Operating income was $1.1 billion, compared to $801.4 million in the prior year, an increase of 36%.
“Our teams’ performance was exemplary in 2021,” says Patrick Hallinan, chief financial officer, Fortune Brands. “In spite of significant cost inflation, and labor and supply chain challenges, we produced 50 basis points of operating margin improvement. Further, we invested an incremental $85 million in brands, innovation and capabilities during the year. As we start 2022, we face headwinds similar to those present in 2021. However, we are confident we will overcome these headwinds and expect to outgrow the market and expand our margins. Our 2022 financial guidance reflects a continued strong market backdrop, share gains and continued margin progression. Our guidance also reflects attractive growth investments, which prioritize projects providing sustainable growth with accretive returns. We are optimistic about the year ahead and will remain agile in responding to any short-term headwinds that may materialize.”
The company’s fourth quarter of 2021 was strong, with $2.0 billion in sales, an increase of 18% over the fourth quarter of 2020. Several segments grew in the fourth quarter of 2021, compared to the prior-year quarter. Outdoors & Security sales increased 40%, or 17% organically. The jump was driven by the addition of Larson Manufacturing, according to the company. The organization also saw double-digit sales growth in decking, doors and security.
The company expects full-year 2022 sales growth in the range of 5.5% to 7.5% based on its assumption of a total global market expanding by 3% to 5%, including growth in the U.S. home products market of approximately 4% to 6%.
“We expect the long-term expansion of housing to continue,” says Nicholas Fink, CEO, Fortune Brands. “Demographic forces continue to support housing formation and growth, which will drive both single-family new construction and repair and remodel investment for a number of years. Existing housing stock is low and is aged, and homeowner equity is trillions of dollars higher compared to a year ago. Consumers are increasingly turning to products built with innovation, sustainability and purpose. Our portfolio of leading brands is squarely aligned with these trends, and we will continue to drive initiatives to fulfill our purpose.”