HAMILTON BEACH BRANDS HOLDING COMPANY ANNOUNCES FOURTH QUARTER AND FULL YEAR 2024 RESULTS
Hamilton Beach Brands (NYSE: HBB) reported strong financial results for Q4 and full year 2024. Full-year revenue increased 4.6% to $654.7 million, with gross margin expanding 300 basis points to 26.0%. Operating profit grew 23.1% to $43.2 million.
Fourth quarter showed revenue growth of 3.3% to $213.5 million, though operating profit decreased 5.7% to $23.6 million. The company generated robust cash flow from operations of $65.4 million in 2024. Notable achievements include the acquisition of HealthBeacon, contributing $4.3 million in revenue, and ending the year with a net cash position of $0.6 million.
For 2025 outlook, HBB expects to outperform industry growth with revenue approaching mid-single digit range and operating profit increasing at a faster rate than revenue.
Hamilton Beach Brands (NYSE: HBB) ha riportato risultati finanziari solidi per il quarto trimestre e per l'intero anno 2024. Il fatturato annuale è aumentato del 4,6% a $654,7 milioni, con un margine lordo che si è espanso di 300 punti base al 26,0%. Il profitto operativo è cresciuto del 23,1% a $43,2 milioni.
Il quarto trimestre ha mostrato una crescita del fatturato del 3,3% a $213,5 milioni, anche se il profitto operativo è diminuito del 5,7% a $23,6 milioni. L'azienda ha generato un robusto flusso di cassa dalle operazioni di $65,4 milioni nel 2024. Tra i risultati notevoli c'è l'acquisizione di HealthBeacon, che ha contribuito con $4,3 milioni di fatturato, chiudendo l'anno con una posizione di cassa netta di $0,6 milioni.
Per le previsioni del 2025, HBB si aspetta di superare la crescita del settore con un fatturato che si avvicina a un intervallo a cifra singola medio e un profitto operativo che aumenta a un ritmo più veloce rispetto al fatturato.
Hamilton Beach Brands (NYSE: HBB) reportó resultados financieros sólidos para el cuarto trimestre y el año completo 2024. Los ingresos anuales aumentaron un 4,6% a $654,7 millones, con un margen bruto que se expandió 300 puntos básicos al 26,0%. El beneficio operativo creció un 23,1% a $43,2 millones.
El cuarto trimestre mostró un crecimiento de ingresos del 3,3% a $213,5 millones, aunque el beneficio operativo disminuyó un 5,7% a $23,6 millones. La empresa generó un robusto flujo de caja de las operaciones de $65,4 millones en 2024. Logros notables incluyen la adquisición de HealthBeacon, que contribuyó con $4,3 millones en ingresos, y cerrando el año con una posición de efectivo neto de $0,6 millones.
Para las perspectivas de 2025, HBB espera superar el crecimiento de la industria con ingresos que se acercan a un rango de un solo dígito medio y un beneficio operativo que aumenta a un ritmo más rápido que los ingresos.
해밀턴 비치 브랜드 (NYSE: HBB)는 2024년 4분기 및 연간 강력한 재무 실적을 보고했습니다. 연간 수익은 4.6% 증가하여 6억 5천 470만 달러에 달하고, 총 마진은 300베이시스 포인트 확대되어 26.0%에 이릅니다. 운영 이익은 23.1% 증가하여 4천 320만 달러에 달했습니다.
4분기는 수익이 3.3% 증가하여 2억 1천 350만 달러에 이르렀지만, 운영 이익은 5.7% 감소하여 2천 360만 달러로 나타났습니다. 회사는 2024년에 운영으로부터 6천 540만 달러의 강력한 현금 흐름을 창출했습니다. 주목할 만한 성과로는 HealthBeacon의 인수가 있으며, 이는 430만 달러의 수익을 기여하고, 연말에는 순현금 포지션이 60만 달러에 이릅니다.
2025년 전망에 대해 HBB는 산업 성장률을 초과할 것으로 예상하며, 수익은 중간 단일 자릿수 범위에 접근하고 운영 이익은 수익보다 더 빠른 속도로 증가할 것으로 보입니다.
Hamilton Beach Brands (NYSE: HBB) a annoncé des résultats financiers solides pour le quatrième trimestre et l'année complète 2024. Le chiffre d'affaires annuel a augmenté de 4,6% pour atteindre 654,7 millions de dollars, avec une marge brute s'élargissant de 300 points de base à 26,0%. Le bénéfice d'exploitation a augmenté de 23,1% pour atteindre 43,2 millions de dollars.
Le quatrième trimestre a montré une croissance du chiffre d'affaires de 3,3% pour atteindre 213,5 millions de dollars, bien que le bénéfice d'exploitation ait diminué de 5,7% pour atteindre 23,6 millions de dollars. L'entreprise a généré un solide flux de trésorerie d'exploitation de 65,4 millions de dollars en 2024. Parmi les réalisations notables figure l'acquisition de HealthBeacon, contribuant à hauteur de 4,3 millions de dollars au chiffre d'affaires, et la fin de l'année avec une position de trésorerie nette de 0,6 million de dollars.
Concernant les perspectives pour 2025, HBB s'attend à dépasser la croissance du secteur, avec un chiffre d'affaires s'approchant de la fourchette à un seul chiffre moyen et un bénéfice d'exploitation augmentant à un rythme plus rapide que le chiffre d'affaires.
Hamilton Beach Brands (NYSE: HBB) berichtete über starke finanzielle Ergebnisse für das vierte Quartal und das gesamte Jahr 2024. Der Jahresumsatz stieg um 4,6% auf 654,7 Millionen USD, während die Bruttomarge um 300 Basispunkte auf 26,0% anstieg. Der Betriebsgewinn wuchs um 23,1% auf 43,2 Millionen USD.
Das vierte Quartal zeigte ein Umsatzwachstum von 3,3% auf 213,5 Millionen USD, obwohl der Betriebsgewinn um 5,7% auf 23,6 Millionen USD zurückging. Das Unternehmen generierte im Jahr 2024 einen robusten Cashflow aus dem operativen Geschäft von 65,4 Millionen USD. Zu den bemerkenswerten Erfolgen zählt die Übernahme von HealthBeacon, die 4,3 Millionen USD zum Umsatz beitrug, und das Ende des Jahres mit einer Nettokassenposition von 0,6 Millionen USD.
Für den Ausblick 2025 erwartet HBB, dass es das Branchenwachstum übertreffen wird, mit einem Umsatz, der sich dem mittleren einstelligen Bereich nähert, und einem Betriebsgewinn, der schneller wächst als der Umsatz.
- Revenue grew 4.6% to $654.7M in 2024
- Record gross margin of 26.0%, up 300 basis points
- Operating profit increased 23.1% to $43.2M
- Strong cash flow from operations of $65.4M
- Net cash position of $0.6M, improved from $34.6M net debt
- EPS increased to $2.20 from $1.80
- Q4 operating profit declined 5.7% to $23.6M
- Q4 gross margin decreased 70 basis points to 26.1%
- Global Commercial market revenue decreased in Q4
- Operating cash flow decreased from $88.6M in 2023 to $65.4M in 2024
Insights
Hamilton Beach Brands delivered strong financial results for 2024, with revenue growing 4.6% to
The company's successful execution is evident in its robust cash generation, with
The Q4 tax benefit of
Management's 2025 outlook for mid-single-digit revenue growth exceeding industry rates suggests continued market share gains. The planned increase in advertising spend points to an offensive growth strategy rather than defensive positioning, particularly targeting premium and commercial segments which remain underpenetrated. The company appears well-positioned to maintain its record gross margins while leveraging its improved balance sheet flexibility for strategic investments.
Hamilton Beach has executed a strategic market share expansion in 2024, growing revenue by
The company's deliberate push into premium and commercial appliances represents a significant strategic shift from their traditional mass-market positioning. These segments typically feature less price sensitivity, higher brand loyalty, and more stable demand patterns than the highly competitive entry-level segments. This diversification provides natural hedging against economic cycles while offering substantially higher margin potential.
The HealthBeacon acquisition, while modest in current revenue contribution (
Their planned increase in advertising spend for 2025 is strategically timed following their margin improvements and balance sheet strengthening. Rather than defending existing territory, this indicates an offensive strategy to accelerate premium segment penetration where brand awareness and perception are important purchase drivers.
The company's ability to generate
2024 Revenue Increased
Full Year Gross Margin Expanded 300 Basis Points to
Cash Flow from Operations for 2024 was
Fourth Quarter Revenue Increased
Fourth Quarter 2024 Overview
- Revenue increased
3.3% to$213.5 million $206.7 million - Gross margin decreased 70 basis points to
26.1% compared to26.8% - Operating profit decreased
5.7% to$23.6 million $25.0 million
Full Year 2024 Overview
- Revenue increased
4.6% to$654.7 million $625.6 million - Gross margin increased 300 basis points to
26.0% compared to23.0% - Operating profit increased
23.1% to$43.2 million $35.1 million - Cash flow from operating activities was
$65.4 million $88.6 million - Total debt at year-end 2024 was
$50.0 million $0.6 million
"The fourth quarter represented a good finish to an outstanding year, marked by strong execution across our businesses," said R. Scott Tidey, President and Chief Executive Officer. "Our top and bottom-line results in the period were in line with our internal targets, driven by solid holiday sell-through. Our ongoing commitment to innovation helped fuel market share gains for our core business in 2024, and accelerated our presence in large, underpenetrated markets such as premium and commercial small appliances. Our operating performance generated robust positive cash flow, allowing us to return capital to shareholders through share repurchases and dividends and end the year in a net cash position."
Results of the Fourth Quarter 2024 Compared to the Fourth Quarter 2023
Total revenue grew
Gross profit was
Selling, general and administrative expenses (SG&A) increased to
Operating profit was
Interest expense, net decreased to
Income tax benefit was
Net income was
Results of the Full Year 2024 Compared to the Full Year 2023
Total revenue of
Gross profit was
Selling, general and administrative expenses (SG&A) increased to
Operating profit increased
Interest expense, net decreased to
The effective tax rate on income was
Net income was
Cash Flow and Debt
For the year ended December 31, 2024, net cash provided by operating activities was
The Company allocated its strong cash flow primarily to fund the acquisition of HealthBeacon and return value to shareholders through the share repurchases and quarterly dividend. On both December 31, 2024 and December 31, 2023 total debt was
For the full year 2024, the Company repurchased 668,785 shares of its Class A common stock at prevailing market prices for an aggregate purchase price of
Outlook
In 2025, the retail marketplace for small kitchen appliances is expected to grow in the low-single digit range led by the
Conference Call
The Company will conduct an earnings conference call and webcast on Wednesday, February 26, 2025, at 4:30 p.m. Eastern time. The call may be accessed by dialing 888-350-3452 (toll free), International 647-362-9199. Conference ID: 1809480. The conference call will also be webcast live on the Company's Investor Relations website at www.hamiltonbeachbrands.com. An archive of the webcast will be available on the website.
About Hamilton Beach Brands Holding Company
Hamilton Beach Brands Holding Company is a leading designer, marketer, and distributor of a wide range of brand name small electric household and specialty housewares appliances, and commercial products for restaurants, fast food chains, bars, and hotels, and is a provider of connected devices and software for healthcare management. The Company's owned consumer brands include Hamilton Beach®, Proctor Silex®, Hamilton Beach Professional®, Weston®, and TrueAir®. The Company's owned commercial brands include Hamilton Beach Commercial® and Proctor Silex Commercial®. The Company licenses the brands for CHI® premium garment care products, CloroxTM home appliances, and Brita HubTM countertop electric water filtration appliances. The Company has exclusive multiyear agreements to design, sell, market, and distribute Bartesian® cocktail makers and Numilk® plant-based milk makers. The Company's Hamilton Beach Health subsidiary is focused on expanding the Company's participation in the home health and medical markets. In 2024, Hamilton Beach Health acquired HealthBeacon, a medical technology firm and strategic partner of the Company since 2021. HealthBeacon, a medical technology firm that specializes in developing connected devices. For more information about Hamilton Beach Brands Holding Company, visit www.hamiltonbeachbrands.com.
Forward-Looking Statements
The statements contained in this news release that are not historical facts are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act. These forward-looking statements are made subject to certain risks and uncertainties, which could cause actual results to differ materially from those presented. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. Such risks and uncertainties include, without limitation: (1) uncertain or unfavorable global economic conditions and impacts from global military conflicts; (2) the Company's ability to source and ship products to meet anticipated demand; (3) the Company's ability to successfully manage constraints throughout the global transportation supply chain; (4) changes in the sales prices, product mix or levels of consumer purchases of small electric and specialty housewares appliances; (5) changes in consumer retail and credit markets, including the increasing volume of transactions made through third-party internet sellers; (6) bankruptcy of or loss of major retail customers or suppliers; (7) changes in costs, including transportation costs, of sourced products; (8) delays in delivery of sourced products; (9) changes in or unavailability of quality or cost effective suppliers; (10) exchange rate fluctuations, changes in the import tariffs and monetary policies and other changes in the regulatory climate in the countries in which the Company operates or buys and/or sells products; (11) the impact of tariffs on customer purchasing patterns; (12) product liability, regulatory actions or other litigation, warranty claims or returns of products; (13) customer acceptance of, changes in costs of or delays in the development of new products; (14) increased competition, including consolidation within the industry; (15) changes in customers' inventory management strategies; (16) shifts in consumer shopping patterns, gasoline prices, weather conditions, the level of consumer confidence and disposable income as a result of economic conditions, unemployment rates or other events or conditions that may adversely affect the level of customer purchases of the Company's products; (17) changes mandated by federal, state and other regulation, including tax, health, safety or environmental legislation; (18) the Company's ability to identify, acquire or develop, and successfully integrate, new businesses or new product lines; and (19) other risk factors, including those described in the Company's filings with the Securities and Exchange Commission, including, but not limited to, the Annual Report on Form 10-K for the year ended December 31, 2024. Furthermore, the future impact of unfavorable economic conditions, including inflation, changing interest rates, availability of capital markets and consumer spending rates remains uncertain. In uncertain economic environments, we cannot predict whether or when such circumstances may improve or worsen, or what impact, if any, such circumstances could have on our business, results of operations, cash flows and financial position.
HAMILTON BEACH BRANDS HOLDING COMPANY CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
| |||||||
THREE MONTHS ENDED DECEMBER 31 | YEAR ENDED DECEMBER 31 | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(In thousands, except per share data) | (In thousands, except per share data) | ||||||
Revenue | $ 213,509 | $ 206,650 | $ 654,693 | $ 625,625 | |||
Cost of sales | 157,754 | 151,366 | 484,486 | 481,949 | |||
Gross profit | 55,755 | 55,284 | 170,207 | 143,676 | |||
Selling, general and administrative expenses | 32,108 | 30,245 | 126,703 | 108,395 | |||
Amortization of intangible assets | 78 | 50 | 302 | 200 | |||
Operating profit | 23,569 | 24,989 | 43,202 | 35,081 | |||
Interest expense, net | 283 | 366 | 613 | 3,000 | |||
Pension termination expense | 16 | — | 7,611 | — | |||
Other expense (income), net | 248 | (5) | 1,602 | 385 | |||
Income before income taxes | 23,022 | 24,628 | 33,376 | 31,696 | |||
Income tax expense (benefit) | (977) | 5,059 | 2,617 | 6,454 | |||
Net income | $ 23,999 | $ 19,569 | $ 30,759 | $ 25,242 | |||
Basic earnings (loss) per share: | |||||||
Basic earnings (loss) per share | $ 1.76 | $ 1.40 | $ 2.20 | $ 1.80 | |||
Diluted earnings (loss) per share: | |||||||
Diluted earnings (loss) per share | $ 1.75 | $ 1.40 | $ 2.20 | $ 1.80 | |||
Basic weighted average shares outstanding | 13,673 | 13,966 | 13,950 | 14,036 | |||
Diluted weighted average shares outstanding | 13,686 | 13,985 | 13,963 | 14,060 | |||
HAMILTON BEACH BRANDS HOLDING COMPANY CONSOLIDATED BALANCE SHEETS (Unaudited)
| |||
DECEMBER 31 | DECEMBER 31 | ||
(In thousands) | |||
Assets | |||
Current assets | |||
Cash and cash equivalents | $ 45,644 | $ 15,370 | |
Trade receivables, net | 117,068 | 135,434 | |
Inventory | 124,904 | 126,554 | |
Prepaid expenses and other current assets | 16,103 | 9,457 | |
Total current assets | 303,719 | 286,815 | |
Property, plant and equipment, net | 34,401 | 27,401 | |
Right-of-use lease assets | 36,049 | 39,423 | |
Goodwill | 7,099 | 6,253 | |
Other intangible assets, net | 2,101 | 1,292 | |
Deferred tax assets | 6,693 | 2,581 | |
Deferred costs | 16,156 | 14,613 | |
Other non-current assets | 8,849 | 6,324 | |
Total assets | $ 415,067 | $ 384,702 | |
Liabilities and stockholders' equity | |||
Current liabilities | |||
Accounts payable | $ 104,161 | $ 99,704 | |
Accrued compensation | 18,792 | 14,948 | |
Accrued product returns | 7,876 | 6,232 | |
Lease liabilities | 5,193 | 6,155 | |
Other current liabilities | 18,098 | 12,549 | |
Total current liabilities | 154,120 | 139,588 | |
Revolving credit agreements | 50,000 | 50,000 | |
Lease liabilities, non-current | 39,008 | 41,937 | |
Other long-term liabilities | 6,036 | 5,910 | |
Total liabilities | 249,164 | 237,435 | |
Stockholders' equity | |||
Preferred stock, par value | — | — | |
Class A Common stock, par value | 115 | 112 | |
Class B Common stock, par value | 36 | 36 | |
Capital in excess of par value | 76,668 | 70,401 | |
Treasury stock | (26,202) | (12,013) | |
Retained earnings | 123,863 | 99,398 | |
Accumulated other comprehensive loss | (8,577) | (10,667) | |
Total stockholders' equity | 165,903 | 147,267 | |
Total liabilities and stockholders' equity | $ 415,067 | $ 384,702 | |
HAMILTON BEACH BRANDS HOLDING COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
| |||||
YEAR ENDED DECEMBER 31 | |||||
2024 | 2023 | 2022 | |||
(In thousands) | |||||
Operating activities | |||||
Net income | $ 30,759 | $ 25,242 | $ 25,267 | ||
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | |||||
Depreciation and amortization | 4,801 | 4,362 | 4,883 | ||
Deferred income taxes | (7,269) | (906) | 372 | ||
Stock compensation expense | 6,270 | 5,394 | 3,424 | ||
— | — | 2,085 | |||
Pension termination expense | 7,611 | — | — | ||
Other | 6,354 | (358) | (129) | ||
Net changes in operating assets and liabilities: | |||||
Trade receivables | 13,840 | (18,768) | 4,532 | ||
Inventory | (4,103) | 30,761 | 26,399 | ||
Other assets | 713 | 10,856 | 6,274 | ||
Accounts payable | 4,747 | 37,493 | (69,911) | ||
Other liabilities | 1,692 | (5,440) | (6,614) | ||
Net cash provided by (used for) operating activities | 65,415 | 88,636 | (3,418) | ||
Investing activities | |||||
Expenditures for property, plant and equipment | (3,193) | (3,419) | (2,279) | ||
Acquisition of business, net of cash acquired | (7,412) | — | — | ||
Issuance of secured loan | (600) | (1,605) | — | ||
Repayment of secured loan | 2,205 | — | — | ||
Purchase of | (4,884) | — | — | ||
Other | — | (150) | — | ||
Net cash provided by (used for) investing activities | (13,884) | (5,174) | (2,279) | ||
Financing activities | |||||
Net additions (reductions) to revolving credit agreements | — | (60,916) | 14,383 | ||
Purchase of treasury stock | (14,106) | (3,074) | (2,979) | ||
Cash dividends paid | (6,294) | (6,082) | (5,782) | ||
Financing fees paid | (548) | — | (47) | ||
Net cash provided by (used for) financing activities | (20,948) | (70,072) | 5,575 | ||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (438) | 1,084 | (123) | ||
Cash, cash equivalents and restricted cash | |||||
Increase (decrease) for the year | 30,145 | 14,474 | (245) | ||
Balance at the beginning of the year | 16,379 | 1,905 | 2,150 | ||
Balance at the end of the year | $ 46,524 | $ 16,379 | $ 1,905 | ||
Reconciliation of cash, cash equivalents and restricted cash | |||||
Cash and cash equivalents | $ 45,644 | $ 15,370 | $ 928 | ||
Restricted cash included in prepaid expenses and other current assets | 880 | 72 | 62 | ||
Restricted cash included in other non-current assets | — | 937 | 915 | ||
Total cash, cash equivalents and restricted cash | $ 46,524 | $ 16,379 | $ 1,905 | ||
Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures: Net (Cash) Debt
Net (cash) debt is a non-GAAP financial measure that management uses in evaluating financial position. Net (cash) debt is defined as long-term debt less cash and cash equivalents and highly liquid short-term investments. Management believes net (cash) debt is an important measure of the Company's financial position due to the amount of cash and cash equivalents on hand. The presentation of this measure is not intended to be considered in isolation from, as a substitute for, or as superior to, the financial information prepared and presented in accordance with
TWELVE MONTHS ENDED DECEMBER 31 | |||
2024 | 2023 | ||
(In millions) | |||
Total debt | $ 50.0 | $ 50.0 | |
Less: cash and cash equivalents | $ (45.6) | $ (15.4) | |
Less: highly liquid short-term investments (1) | $ (5.0) | $ — | |
Net (cash) debt | $ (0.6) | $ 34.6 | |
(1) Investments with original maturities greater than 3 months but less than one year are included in prepaid expenses and other current assets on the balance sheet. If the original maturity is 3 months or less it is included within cash and cash equivalents. |
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SOURCE Hamilton Beach Brands Holding Company
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