Q2 2024 Fortune Brands Innovations Inc Earnings Call Transcript
Key Points
- Fortune Brands Innovations Inc (FBIN) reported solid top-line and strong bottom-line results with net sales of $1.2 billion, up 7% year-over-year.
- The company's digital products portfolio saw approximately 200,000 device activations in the second quarter, indicating accelerating growth.
- FBIN announced key partnerships with several large insurance companies, including a nationwide agreement with Farmers Insurance, which is expected to drive significant growth.
- The company achieved a 40 basis points improvement in operating margin compared to the second quarter of 2023, bringing year-to-date operating margin improvement to 110 basis points.
- FBIN's security segment grew sales by 12% in the quarter, with a 330 basis points improvement in operating margin, driven by continuous improvement initiatives.
- Organic sales were down 3% compared to the second quarter of 2023, excluding China, which was impacted by lower sales due to cautious consumer behavior.
- The market in China continues to remain challenged, with sales down more than 35% in the quarter.
- The company's security segment saw a high single-digit decline in organic sales, primarily due to continued softness in consumer retail and e-commerce.
- FBIN's guidance for the remainder of 2024 reflects a cautious outlook on consumer confidence and continued affordability challenges.
- The company expects the global market for its products to be down 3% to 1%, with the US market down 1% to flat, indicating a challenging market environment.
Good afternoon. My name is Ashley, and I will be your conference operator today. At this time, I would like to welcome everyone to the Fortune Brands second quarter 2024 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session.
I would like to turn the call over to Lee Asic, Vice President of Investor Relations and Corporate Affairs. You may begin the conference call.
Good afternoon, everyone, and welcome to the Fortune Brands Innovations Second Quarter Earnings Call. Hopefully, everyone have had a chance to review the earnings release. The earnings release and the audio replay of this call can be found on the Investors section of our SDIN. dot com website.
I want to remind everyone that the forward-looking statements we make on the call today, either in our prepared remarks or in the associated question-and-answer session are based on current expectations
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