RPM International Inc (RPM) Reports Record Fiscal 2024 First-Quarter Results
On October 4, 2023, RPM International Inc (NYSE:RPM), a global leader in specialty coatings, sealants, and building materials, released its fiscal 2024 first-quarter results. The company reported record first-quarter sales and all-time record adjusted EBIT, marking the seventh consecutive quarter of achieving record quarterly sales and adjusted EBIT. This growth was primarily driven by the company's focus on MAP 2025 margin achievement initiatives and leveraging its competitive strengths.
Financial Highlights
For the quarter ended August 31, 2023, RPM reported net sales of $2,011,857, a 4.1% increase from $1,932,320 in the same period last year. Net income attributable to RPM stockholders increased by 19.0% to $201,082, while diluted EPS rose by 19.1% to $1.56. The company's adjusted EBIT reached an all-time record of $309,014, a 12.3% increase from the previous year.
Segment Performance
The Construction Products Group (CPG) reported record sales and adjusted EBIT, driven by its focus on repair and maintenance and its turn-key service model. The Performance Coatings Group (PCG) also reported record first-quarter sales, driven by growth in flooring systems and other businesses that serve infrastructure and reshoring capital projects. The Specialty Products Group (SPG) saw a decline in sales due to lower volumes at businesses supplying OEM markets. The Consumer Group reported record first-quarter sales driven by selling price increases in response to cost inflation.
Business Outlook
According to RPM chairman and CEO, Frank C. Sullivan, the positive momentum generated in the first quarter is expected to continue in the second quarter and the remainder of the fiscal year 2024. The company expects to generate good growth in the second quarter, despite facing challenging comparisons from record prior-year results. RPM's outlook for the remainder of the fiscal year remains generally unchanged from its prior guidance, with continued strong execution of its business strategy and reduced headwinds from destocking and inflation resulting in strong growth and another year of record sales and profitability.
Conclusion
RPM's record first-quarter results demonstrate the company's strong execution and progress in improving its working capital. The company's focus on MAP 2025 margin achievement initiatives and leveraging its competitive strengths continue to drive its impressive growth. With its positive business outlook, RPM is well-positioned for continued success in the remainder of fiscal 2024.
This article first appeared on GuruFocus.
