Avon Products, Inc. (AVP) will provide a live webcast of its fourth-quarter and full-year 2016 earnings conference call on Thursday, February 16, 2017, at 9:00 a.m. Eastern Time. The conference call will be hosted in Rye, New York and participating on the call will be Sheri McCoy, Chief Executive Officer, Jamie Wilson, Chief Financial Officer and Jim Scully, Chief Operating Officer.
Those wishing to access the webcast can do so from www.avonshareholder.com. The webcast will also be archived on the website for one year.
Newell Brands Inc (NWL) declared its fourth quarter and full year 2016 financial results recently.
Fourth Quarter 2016 Executive Summary
- Net sales growth of 165.0 percent to $4.14 billion and core sales growth of 2.5 percent.
- Stated diluted earnings per share of $0.34 contrast with $0.05 in the prior year. Stated earnings per share benefited from sales growth, earnings from acquisitions, Project Renewal savings and cost synergies related to the Jarden acquisition, which more than offset raised advertising and promotion, negative foreign currency impacts, a boost in amortization of intangibles, higher interest expense, higher share count and a $164 million one-time deferred tax charge related to the Tools divestiture.
- Normalized diluted earnings per share of $0.80 contrast with $0.56 in the prior year, a 42.9 percent increase. Normalized earnings per share exclude certain items described later in the release.
- Stated operating margin of 12.4 percent, a 590 basis point improvement as contrast to the prior year; normalized operating margin of 16.3 percent, a 260 basis point improvement as contrast to the prior year.
- Operating cash flow of $991.5 million contrast with $277.7 million in the prior year; gross debt of $11.89 billion reflecting a reduction of $855 million during the quarter and a $2.06 billion reduction since the creation of Newell Brands on April 15, 2016.
- Established full year 2017 net sales guidance range of $14.52 billion to $14.72 billion. This outlook reflects current expectations for timing of acquisitions and divestitures, the negative impact of over $250 million related to foreign exchange, and the revised core sales growth range. The net sales guidance range represents net sales growth of 9.5 percent to 11.0 percent contrast with prior year.
- Revised guidance for full year 2017 core sales growth of 2.5 to 4.0 percent contrast with initial 2017 guidance of 3.0 to 4.0 percent. The updated outlook range reflects revised expectations on the company’s businesses with larger U.S. mall-based retail presence given lowered expectations for U.S. retail mall foot traffic.
- Revised guidance for full year 2017 normalized diluted earnings per share of $2.95 to $3.15 contrast with initial 2017 guidance of $2.85 to $3.05. This raised outlook reflects current expectations for timing of acquisitions and divestitures, the negative impact of foreign exchange and the positive impact of a lower tax rate reflecting anticipated discrete tax benefits in the third quarter of the year.
“Our fourth quarter results reflect continued strong progress in the company’s transformation,” said Newell Brands Chief Executive Officer Michael Polk. “We delivered over 40 percent earnings per share growth and nearly $1 billion of operating cash flow, driven by accelerating cost savings from synergies and Project Renewal. Despite noteworthyportfolio and organization change in the quarter, core sales growth was competitive led by very good growth on Writing, Baby, Beverages, Waddington, Fishing, Team Sports and Technical Apparel. We delivered this outcome in the context of challenging mall-based retail conditions driven by accelerating bricks-to-clicks shopper migration during the holidays.
“This has been one of the most transformative years in our history,” Polk continued. “In the context of unprecedented change, we have delivered very strong full year results with core sales growth of 3.7 percent and normalized earnings per share growth of nearly 33 percent. We have made tremendous progress on our planned program to strengthen our portfolio, acquiring businesses with over $10 billion in revenue and divesting or holding for sale businesses with about $1.6 billion in revenue. Our progress on costs has facilitated us to improve normalized operating margin by over 100 basis points while simultaneously investing for future growth by strengthening our capabilities in insights, design, innovation and ecommerce. And we have rapidly deleveraged our balance sheet, reducing gross debt by nearly $2.1 billion since the creation of Newell Brands on April 15, 2016. As we head into 2017, we are confident that we will continue to rapidly deleverage while simultaneously putting the building blocks in place to drive the growth acceleration and transformative value creation promised in the Growth Game Plan.”