Fortune Brands Innovations, Inc. reported a slight decline in net sales for the fiscal year ending December 28, 2024, totaling $4.609 billion, down 0.4% from $4.626 billion in 2023. The company's operating income, however, increased by 20% to $737.9 million, compared to $614.9 million in the previous year. This growth in profitability was attributed to strategic acquisitions, including the purchase of SpringWell Water Filtration Systems for $105.6 million and the Emtek and Schaub premium hardware business, which collectively contributed $175.5 million to sales. The company also benefited from raw material cost deflation and improved manufacturing efficiencies.
In terms of segment performance, the Water segment saw a marginal increase in sales to $2.565 billion, while the Outdoors segment reported a slight rise to $1.350 billion. Conversely, the Security segment experienced a decline in sales to $694.3 million, primarily due to lower sales volume and increased customer incentives. The company’s total operating margins remained stable, ranging between 16% and 17% over the past three years, reflecting effective cost management and operational improvements.
Fortune Brands underwent significant organizational changes, including a shift in its fiscal year-end to align with its operating businesses and a restructuring of its reporting segments from two to three: Water, Outdoors, and Security. The company also completed the spin-off of its Cabinets business, MasterBrand, in December 2022, which has since been reported as discontinued operations. As of December 28, 2024, the company employed over 11,000 individuals globally, with a focus on enhancing employee engagement and retention through various talent development initiatives.
Looking ahead, Fortune Brands anticipates continued challenges in the housing market, particularly in the U.S. and China, which could impact consumer demand for home improvement products. The company plans to leverage its established brands and invest in digital transformation and product innovation to capture market share and drive growth. Management remains optimistic about the long-term outlook for its product categories, despite the current economic headwinds, and is committed to returning value to shareholders through dividends and share repurchase programs.
About Fortune Brands Innovations, Inc.
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