ALPHARETTA, Ga. - Mativ Holdings, Inc. ("Mativ" or the "Company") (NYSE: MATV) reported earnings results for the three months ended March 31, 2024.
On November 30, 2023, Mativ Holdings, Inc. (“Mativ” or the “Company”) completed the sale of its Engineered Papers business. Financial results for continuing operations exclude Engineered Papers in all periods.
Adjusted measures are reconciled to GAAP at the end of this release. Financial comparisons are versus the prior year period unless stated otherwise. Figures may not sum to total due to rounding. "Comparable" non-GAAP measures used to compare current period Mativ results reflect prior period results revised to align with our new segment reporting structure. Along with its earnings report on Form 8-K, the Company filed a separate Form 8-K on May 8, 2024, which includes comparable financial statements for all fiscal quarters of 2023 revised to align with the new segment reporting structure.
Mativ First Quarter 2024 Highlights (Continuing Operations)
- Sales of $500.2 million increased 10.6% sequentially versus Q4 2023, and decreased 8.9% versus the prior year, reflecting sequential volume recovery
- GAAP loss was $(28.0) million, GAAP EPS was $(0.52), which included organizational realignment, integration and purchase accounting expenses
- Adjusted income was $1.1 million, Adjusted EPS was $0.02, and Adjusted EBITDA was $45.8 million (see non-GAAP reconciliations). Adjusted EBITDA was down 6% versus the prior year, as impacts from lower volumes and higher production costs more than offset net benefits of input costs/selling price and synergies realization
Management Commentary
Chief Executive Officer Julie Schertell commented, "As expected, we saw meaningful sequential improvement in volume in Q1. And while EBITDA was slightly lower than Q4, the sequential decrease was primarily due to higher cost inventories, which do not repeat. Volume recovery is continuing into Q2, and we continue to believe that we will deliver meaningfully improved EBITDA year-over-year for the remainder of 2024."
"Earlier this year, we initiated an organizational restructuring initiative that will reduce our corporate costs and create a more streamlined business reporting structure. This enables a more agile organization, and we expect will reduce non-operating costs by up to $20 million annually as we exit 2024. These decisions, coupled with actions we took in 2023 to divest Engineered Papers, consolidate our footprint, and invest in new assets in filtration and release liners support future top line growth and increase our operating leverage as volume continues to recover."
Ms. Schertell concluded, "Less than two years after the merger, Mativ is a more agile and effective enterprise that engineers innovative solutions that connect, protect, and purify our world. We are relentless in our pursuit to reduce complexity and prioritize our efforts toward those activities that create the most value for our customers. As we continue to see improving demand, we remain confident that our decisions and actions over the past year will deliver incremental value to our customers and shareholders.”
Source: Mativ
