Q2 2024 Hayward Holdings Inc Earnings Call Transcript
Key Points
- Net sales increased modestly year over year to $284 million, consistent with expectations.
- Gross profit margins expanded 290 basis points to a record 51%, marking the sixth consecutive quarter of year-over-year gross margin expansion.
- Cash flow from operations increased 26% year over year in the first half, enabling early debt repayment and strategic acquisitions.
- The acquisition of ChlorKing, a leader in commercial pool water sanitization, is expected to enhance Hayward Holdings Inc (HAYW)'s position in the commercial pool market.
- Adjusted EBITDA margin increased 100 basis points year over year to 29%, and adjusted EPS increased 11% to $0.21.
- Net sales in Europe and the rest of the world declined 6%, with a significant 21% drop in the rest of the world segment.
- Demand for new construction and remodels continues to be impacted by current economic conditions and higher interest rates.
- The company is facing a more challenging demand environment, particularly in new construction and remodels and certain international markets.
- Channel partners are pursuing leaner inventory positions, which may impact sales and inventory management.
- The guidance range for fiscal year 2024 reflects uncertainty in global macro conditions and consumer spending trends.
Greetings, and welcome to Hayward Holdings second-quarter 2024 earnings call. My name is Melissa, and I will be your operator for today.
(Operator Instructions) Please note that this conference is being recorded. I will now turn the call over to Kevin Maczka, Vice President of Investor Relations. Mr. Maczka, you may begin.
Thank you, and good morning, everyone. We issued our second-quarter 2024 earnings press release this morning, which has been posted to the Investor Relations section of our website at investor.hayward.com. There, you can also find an earnings slide presentation that we will reference during this call.
I'm joined today by Kevin Holleran, President and Chief Executive Officer; and Eifion Jones, Senior Vice President and Chief Financial Officer.
Before we begin, I would like to remind everyone that during this call, the company may make certain statements that are considered forward-looking in nature, including management's outlook for 2024 and future periods. Such statements
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