JELD-WEN Reports Eighth Consecutive Quarter of Core Revenue GrowthAugust 2nd, 2022 by Editor
JELD-WEN Holding announced its eighth consecutive quarter of core revenue growth, reporting an 11% increase paired with a net revenue increase of 6.8%, for the period ending June 25. CEO Gary S. Michel says cost inflation and softening retail demand impacted profitability in the second quarter, and that the company must “execute better and consistently deliver on our promises to customers and shareholders.”
Results for the second quarter include net revenue of $1,331.0 million, a net income of $45.8 million, adjusted EBITDA of $125.8 million, cash flow used in operations of $165.7 million, earnings per share (EPS) of $0.52, and adjusted EPS of $0.57.
Net revenue increased 6.8% for the second quarter driven by 11% core revenue growth. The second quarter of 2022 also marks the eighth consecutive quarter of core revenue growth, the company reports, with core revenue growing in each segment, led by the North America segment.
“Significant cost inflation and softening retail demand in North America and Europe impacted our profitability more than we anticipated in the second quarter,” said Michel. “These results are not indicative of the performance-driven culture and expectations at JELD-WEN. We know we have the right strategy, our long-term macroeconomic fundamentals remain strong, and our productivity initiatives are yielding benefits. But, we must execute better and consistently deliver on our promises to customers and shareholders. We have already taken aggressive actions to reduce costs and are actively working on additional opportunities to accelerate margin expansion.”
Net revenue for the three months ended June 25, 2022 increased $85.2 million, or 6.8%, to a total of $1,331.0 million, compared to $1,245.8 million for the same period last year. The increase in net revenue was driven by 11% core revenue growth, partially offset by a 4% adverse foreign exchange impact. Core revenue growth was driven by price realization (+12%), partially offset by lower volume/mix (1%).
JELD-WEN reports that net income was $45.8 million in the second quarter, a decrease of $14.9 million, compared to net income of $60.7 million in the same period last year. A company press release about the financial reports attributes the decrease in net income largely to lower gross profit from cost inflation, partially offset by higher other income and lower SG&A expense. Adjusted net income for the second quarter decreased 0$10.1 million, or 16.7%, to $50.2 million, compared to $60.3 million in the same period last year.
On a segment basis for the second quarter of 2022, compared to the same period last year in North America net revenue increased $99.0 million, or 13.4%, to $839.1 million, due to a 14% increase in core revenue.
JELD-WEN’s revised 2022 outlook includes a core revenue growth remaining at approximately 10%, but due to foreign exchange translation headwinds, revenue growth is revised to a range of 4% to 6% from a previous range of 7% to 10%.