ALPHARETTA, Ga, - Mativ Holdings, Inc. ("Mativ" or the "Company") (NYSE: MATV) reported earnings results for the three months ended September 30, 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. The Company previously also 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 Third Quarter 2024 Highlights (Continuing Operations)
- Sales of $498.5 million increased 0.1% year over year, and 1.4% on an organic basis
- GAAP loss was $20.8 million in Q3 2024, an improvement of $443.5 million compared to $464.3 million in the prior year (which included a $401.0 million goodwill impairment charge), GAAP EPS was $(0.38); both included organizational realignment, impairment, divestiture and purchase accounting expenses
- Adjusted income was $11.0 million, Adjusted EPS was $0.21, and Adjusted EBITDA was $60.8 million (see non-GAAP reconciliations)
- Adjusted EBITDA was up 10% versus the prior year, primarily driven by improved manufacturing performance, lower SG&A and distribution expenses, partially offset by lower volumes in advanced films, and less favorable mix
- GAAP operating profit margin improved materially compared to the prior year (which included a $401.0 million goodwill impairment charge) and adjusted EBITDA margin increased 110 basis points
Management Commentary
Chief Executive Officer Julie Schertell commented, "We saw meaningful increases in volume and profitability in Filtration and our overall SAS segment during the third quarter, with SAS segment adjusted EBITDA increasing almost 20% year over year. This was somewhat offset by results in Advanced Films, which were impacted by automotive and construction end markets. As such, we have launched a turnaround effort specific to Advanced Films focused on demand generation, operational performance and increased customer and end market diversification. This turnaround effort will be similar to the approach we used for Healthcare throughout 2023, which year-to-date, resulted in above-market sales growth of more than 5% and materially improved profitability versus the same period in 2023.
Given the prevailing macro-economic conditions and the slow pace of demand recovery, we continue to prioritize those things that we can control and execute on actions to mitigate external market factors, such as the $20 million reduction in non-operating cost announced earlier this year. Additionally, we are increasing capacity in our growth categories of filtration, specialty tapes, release liners and medical films, while at the same time reducing cost and optimizing our supply chain by reducing our plant footprint from 48 sites at the time of the merger to 35 sites today and our warehousing footprint by more than 25%. These actions reduce cost and complexity, and support sustained margin improvements as demand returns.”
Source: Mativ
