The adjusted EBITDA was up 2 per cent versus the prior year, primarily driven by favourable net price/input costs performance, and lower distribution and SG&A expenses, partially offset by lower volumes and higher manufacturing costs, Mativ Holdings said in a press release.
Mativ Holdings, Inc has reported sales of $1,981.1 million in FY24, down 2.2 per cent YoY, with adjusted EBITDA of $218.0 million and adjusted EPS of $0.62.
The company’s Q4 FY24 sales reached $458.6 million, up 1.4 per cent YoY.
Adjusted EBITDA was $44.8 million, while adjusted EPS stood at $0.05.
SAS segment sales rose 7.5 per cent, while FAM sales fell 7.8 per cent.
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 50 basis points (bps).
“Our consolidated performance for Q4 was as expected. We delivered strong Q4 results in our SAS segment with organic revenue growth of almost 13 per cent and adjusted EBITDA increasing approximately 8 per cent. The increasing order pace and momentum in statistical analysis system (SAS) is continuing into 2025,” said Julie Schertell, chief executive officer (CEO) at Mativ Holdings.
Schertell added: “Our filtration and advanced materials (FAM) segment had mixed results in Q4 with solid demand in filtration and challenges, as previously announced, in our advanced films category, particularly in paint protection films. Our turnaround activities are well underway, and we are realizing improved cost, quality, lead time, and order delivery.
“As we enter 2025, we are focused on the highest profit and cash accretive activities including announced pricing actions, incremental manufacturing and overhead cost reduction initiatives, and a stronger sales pipeline. With sequential improvement in our order books as well, I am confident in our team and the efforts we have underway to position Mativ for 2025 and beyond.”
Fourth quarter (Q4) financial
In Q4, Mativ sales reached $458.6 million, an increase of 1.4 per cent YoY, and 4.3 per cent on an organic basis. GAAP income was $1.5 million in Q4 2024, an improvement of $15.1 million compared to a $13.6 million GAAP loss in the prior year, GAAP EPS was $0.03; the current period included organisational realignment expenses and both periods included purchase accounting expenses.
The adjusted EBITDA was $44.8 million, adjusted income was $3.0 million, and adjusted EPS was $0.05. Adjusted EBITDA was down 10 per cent versus the prior year, primarily driven by lower volumes in advanced films, higher input and manufacturing costs, partially offset by higher volumes in the remainder of our product categories, lower SG&A and distribution expenses.
Filtration and advanced materials (FAM) segment sales, comprised primarily of filtration media and components, advanced films, coating and converting solutions, and extruded mesh products, were $167.8 million, down 7.8 per cent versus the prior year period, as stable volumes in filtration were more than offset by lower volumes in advanced films and netting and lower selling prices across the segment.
Sustainable and adhesive solutions (SAS) segment sales comprised primarily of tapes, labels, liners, specialty paper, packaging and healthcare solutions, of $290.8 million were up 7.5 per cent, and 12.8 per cent on an organic basis, versus the prior year period, as higher volumes across all product categories and higher selling prices were partially offset by sales associated with closed and divested plants.
Fibre2Fashion News Desk (SG)
