Matthews International Reports 10.7% Sales Decline and Net Loss in Q1 Fiscal 2025

Matthews International Corporation reported a decline in financial performance for the first quarter of fiscal 2025, ending December 31, 2024. The company recorded total sales of $401.8 million, down from $450.0 million in the same period last year, reflecting a decrease of approximately 10.7%. The decline was primarily driven by lower sales in the Industrial Technologies and Memorialization segments. The company also reported a net loss of $3.5 million, or $(0.11) per share, compared to a net loss of $2.3 million, or $(0.07) per share, in the prior year.

In terms of operational metrics, the Memorialization segment saw sales decrease to $190.5 million from $208.1 million, attributed to lower unit sales of caskets and granite memorial products, influenced by a decline in U.S. death rates. The Industrial Technologies segment experienced a more significant drop, with sales falling to $80.5 million from $111.4 million, impacted by slower market conditions and project delays. Conversely, the SGK Brand Solutions segment reported a slight increase in sales to $130.8 million from $130.5 million, driven by higher cylinder product sales in Europe and improved price realization.

The company’s balance sheet showed total assets of $1.79 billion, a decrease from $1.83 billion at the end of the previous fiscal year. Current liabilities also decreased to $395.6 million from $434.8 million, primarily due to a reduction in trade accounts payable and accrued compensation. Matthews International's cash and cash equivalents stood at $33.5 million, down from $40.8 million, while long-term debt increased to $801.9 million from $769.6 million, reflecting ongoing financing activities.

Strategically, Matthews completed a small acquisition in the Memorialization segment for $2.2 million during the quarter and announced plans for a larger acquisition valued at $57 million, expected to close mid-2025. The company also initiated a stock repurchase program, with 440,220 shares remaining available for repurchase as of December 31, 2024. Looking ahead, Matthews anticipates that sales growth will be influenced by market conditions, particularly in the Industrial Technologies segment, and expects to generate sufficient cash from operations to fund its capital spending projects, estimated between $50 million to $60 million for the fiscal year.