Newell Brands Reports $216 Million Net Loss, Implements Restructuring Initiatives

Newell Brands Inc. reported a net loss of $216 million for the fiscal year ending December 31, 2024, a significant improvement from a net loss of $388 million in the previous year. The company's net sales decreased by 6.8% to $7.58 billion, down from $8.13 billion in 2023, primarily due to soft global demand and distribution losses. The decline in sales was partially offset by pricing actions, particularly in international markets, which helped mitigate the impact of inflation and currency fluctuations. Gross profit increased by 8.3% to $2.55 billion, resulting in a gross margin improvement to 33.6%, compared to 28.9% in 2023.

In terms of strategic developments, Newell Brands has been actively restructuring its operations to enhance efficiency and reduce costs. The company implemented several initiatives, including Project Ovid, which streamlined its supply chain by consolidating 23 business-unit-centric supply chains into a single integrated model. Additionally, the Network Optimization Project aimed to simplify the North American distribution network, while Project Phoenix focused on reducing complexity and overhead costs. These restructuring efforts are expected to yield significant savings and operational improvements, with total restructuring-related charges recorded at $15 million for the year.

Operationally, Newell Brands employed approximately 23,700 people globally as of December 31, 2024, with a notable focus on enhancing its front-end commercial capabilities through an organizational realignment plan initiated in January 2024. The company reported that its largest customer, Amazon, accounted for approximately 15% of net sales in 2024, while Walmart contributed around 14%. The company continues to face challenges from a competitive retail environment, with major retailers exerting strong bargaining power and focusing on inventory management.

Looking ahead, Newell Brands anticipates ongoing challenges due to macroeconomic conditions, including inflationary pressures and fluctuating consumer demand. The company is committed to executing its turnaround plan and improving its financial performance through cost optimization and strategic investments in its most profitable brands and growth channels. Management remains cautious about the potential for further declines in demand and is prepared to adapt its strategies accordingly to navigate the evolving retail landscape.