Adjustments for Non-Cash Items (USD, M)

Stock-Based Compensation (USD, M)

Changes in Working Capital (USD, M)

Capital Expenditures (CapEx) (USD, M)

Proceeds from / Repayments of Debt (USD, M)

Share Repurchases (USD, M)

Dividend Payments (USD, M)

Net Change in Cash (USD, M)

6536a5090dd95bf7bbb6f8bb8562f98a34b01c1353083284e50201a3e82409c1

f6fac0c564b87051355983232fba7f5352c44f793b93c3a924b40d54a23d0b76

bf83291d5dfa89af8ccaed1d7b7863dc934fea0ac26b3fb8b2145e7d48c5f20f

Home and Commercial Solutions

Learning and Development

Outdoor and Recreation

Commercial Solutions

Home Appliances

Home Solutions

337823fab440bcde235b2300568977c61c971ee5a62aad65c606ae79919a41c7

North America

International

Total

828e778930942de42ae5f9f869790866433b56e7fb06264c3d0ca2569343219b

Newell Brands Inc. is a leading global consumer goods company known for its diverse portfolio of well-known brands. The company operates in nearly 200 countries and focuses on enhancing and brightening consumers' lives both at home and outdoors by creating moments of joy, building confidence, and providing peace of mind. Newell Brands sells a wide range of products, including household items, writing instruments, baby gear, and outdoor lifestyle products  **[0000814453-24-000013_exhibit991-december_2023.htm:6]** **[0000814453-23-000068_nwl-20230331.htm:26]** **[0000814453-23-000135_exhibit991-q2_2023xjunex20.htm:7]** **[0001193125-24-042851_d760670dex991.htm:2]** .

1. **Home and Commercial Solutions** - Offers commercial cleaning and maintenance solutions, closet and garage organization, hygiene systems, material handling solutions, household products, kitchen appliances, food and home storage products, fresh preserving products, vacuum sealing products, gourmet cookware, bakeware, cutlery, and home fragrance products  **[0000814453-24-000058_nwl-20240331.htm:20]** .
   - **Brands**: Ball, Calphalon, Crockpot, FoodSaver, Mapa, Mr. Coffee, Oster, Rubbermaid, Rubbermaid Commercial Products, Sistema, Spontex, Sunbeam, WoodWick, Yankee Candle  **[0000814453-24-000058_nwl-20240331.htm:20]** .

2. **Learning and Development** - Provides baby gear and infant care products, writing instruments (markers, highlighters, pens, pencils), art products, activity-based products, and labeling solutions  **[0000814453-24-000058_nwl-20240331.htm:20]** .
   - **Brands**: Dymo, Elmer’s, EXPO, Graco, NUK, Paper Mate, Parker, Sharpie  **[0000814453-24-000058_nwl-20240331.htm:20]** .

3. **Outdoor and Recreation** - Focuses on active lifestyle products for outdoor and outdoor-related activities, technical apparel, and on-the-go beverageware  **[0000814453-24-000058_nwl-20240331.htm:20]** .
   - **Brands**: Campingaz, Coleman, Contigo, Marmot  **[0000814453-24-000058_nwl-20240331.htm:20]** .

fbe225d94fe5e409ce7223f177ebf05a7807fd1f685203c2272b59b2cfa37649

| Name                   | Position                                                      | Start Date       | Short Bio                                                                                                                                                                                                                                                                                                                                                     |
|------------------------|---------------------------------------------------------------|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Christopher H. Peterson| President and Chief Executive Officer                         | May 16, 2023     | Christopher H. Peterson has been serving as CEO since **May 16, 2023**, and as President since **May 5, 2022**. He was previously the CFO from December 2018 to January 2023 and has held various senior positions within the company, including Interim CEO and CFO in 2019  **[0000814453-24-000017_nwl-20231231.htm:44]** **[0001193125-24-078792_d646180ddef14a.htm:13]** .                                                                          |
| Mark J. Erceg          | Chief Financial Officer                                       | January 9, 2023  | Mark J. Erceg has been the CFO since **January 9, 2023**. Before joining Newell Brands, he was the EVP and CFO at Cerner Corporation and held CFO positions at Tiffany & Company, Canadian Pacific Railway, and Masonite International Corporation  **[0000814453-24-000017_nwl-20231231.htm:44]** **[0000814453-23-000026_nwl-20221231.htm:42]** **[0001193125-22-302341_d434473dex991.htm:0]** .                                                                                                 |
| Bradford R. Turner     | Chief Legal and Administrative Officer and Corporate Secretary| August 2017      | Bradford R. Turner has been in his current role since **August 2017**. He joined Newell Brands in 2004 and has held various legal roles, including Senior Vice President, General Counsel, and Corporate Secretary  **[0000814453-24-000017_nwl-20231231.htm:44]** .                                                                                                                                        |
| Tracy L. Platt         | Chief Human Resources Officer                                 | December 2023    | Tracy L. Platt has served as the Chief Human Resources Officer since **December 2023**. She was previously the EVP and CHRO at Cerner Corporation and held various HR leadership roles at Medtronic, Cardinal Health, Lands’ End, and GE Healthcare  **[0000814453-24-000017_nwl-20231231.htm:45]** .                                                                                                        |
| Michal J. Geller       | President, e-Commerce and Digital                             | April 2021       | Michal J. Geller has been the President, e-Commerce and Digital since **April 2021**. Before joining Newell Brands, he was the SVP of Global e-Commerce Marketing and Data Science at PepsiCo and held various roles at Amazon  **[0000814453-24-000017_nwl-20231231.htm:45]** **[0000814453-23-000026_nwl-20221231.htm:43]** .                                                                                                                         |
| Michael M. Hayes       | Chief Customer Officer                                        | April 2020       | Michael M. Hayes has served as the Chief Customer Officer since **April 2020**. He was previously the SVP, Sales & Sales Strategy at Georgia-Pacific LLC and has held various sales and marketing leadership roles at several companies  **[0000814453-24-000017_nwl-20231231.htm:45]** **[0000814453-23-000026_nwl-20221231.htm:43]** .                                                                                                               |
| Melanie Huet           | President, Brand Management and Innovation                    | February 2023    | Melanie Huet was appointed as President, Brand Management and Innovation in **February 2023**. She served as a consultant to the company between October 2022 and January 2023 and held executive positions at Serta Simmons Bedding LLC and Kraft Heinz  **[0000814453-24-000017_nwl-20231231.htm:45]** **[0000814453-24-000017_nwl-20231231.htm:44]** **[0000814453-23-000026_nwl-20221231.htm:43]** .                                                                                           |
| Dennis Senovich        | Chief Supply Chain Officer                                    | April 2019       | Dennis Senovich has served as the Chief Supply Chain Officer since **April 2019**. He was previously the Global Head of Procurement at Newell Brands and has extensive experience in supply chain leadership roles at companies like Nestlé and PepsiCo North America  **[0000814453-24-000017_nwl-20231231.htm:46]** **[0000814453-24-000017_nwl-20231231.htm:44]** .                                                                                  |
| Michael P. McDermott   | Segment CEO, Home & Commercial Solutions                      | January 2023     | Michael P. McDermott was appointed as Segment CEO, Home and Commercial Solutions in **January 2023**. He was previously the Business Unit CEO, Commercial and held executive positions at Bass Pro Shops and Lowe's Companies Inc.  **[0000814453-24-000017_nwl-20231231.htm:46]** **[0000814453-23-000026_nwl-20221231.htm:44]** .                                                                                                                     |
| Kristine K. Malkoski   | Segment CEO, Learning & Development                           | January 2023     | Kristine K. Malkoski was appointed as Segment CEO, Learning and Development in **January 2023**. She previously served as Business Unit CEO, Writing and Business Unit CEO, Food  **[0000814453-24-000017_nwl-20231231.htm:46]** **[0000814453-23-000026_nwl-20221231.htm:44]** .                                                                                                                                                                      |
| Nicolas Duran          | Segment CEO, Outdoor & Recreation                             | January 2024     | Nicolas Duran was appointed as Segment CEO, Outdoor and Recreation in **January 2024**. Before joining Newell Brands, he held several leadership roles at Dorel Industries Inc. and began his career at Reebok International  **[0000814453-24-000017_nwl-20231231.htm:46]** .                                                                                                                             |
| Bridget Ryan Berman    | Chair of the Board                                            | May 8, 2024      | Bridget Ryan Berman has been serving on Newell Brands' Board since **April 2018** and was designated as the Chair of the Board, effective **May 8, 2024**. She has over 35 years of experience in retail, including roles at Victoria's Secret Direct, Giorgio Armani Corporation, and Apple Computer, Inc.  **[0001193125-24-042851_d760670dex991.htm:1]** **[0001193125-24-042851_d760670d8k.htm:1]** **[0001193125-24-078792_d646180ddef14a.htm:10]** .                                          |
| James Keane            | Board Member                                                  | February 15, 2024| James Keane was elected to the Board of Directors, effective **February 15, 2024**. He has significant leadership experience from his 25-year career at Steelcase and serves on the Board of Rockwell Automation  **[0001193125-24-042851_d760670dex991.htm:1]** **[0001193125-24-042851_d760670d8k.htm:1]** .                                                                                                                                       |
| Anthony "Tony" Terry   | Board Member                                                  | January 1, 2024  | Anthony "Tony" Terry was elected to the Board of Directors, effective **January 1, 2024**. He has over 26 years of experience in financial analysis and strategic planning, having held leadership roles at Marriott Vacations Worldwide Corporation and The Walt Disney Company  **[0001193125-23-286805_d580662dex991.htm:0]** **[0001193125-23-286805_d580662d8k.htm:1]** **[0001193125-24-078792_d646180ddef14a.htm:14]** .                                                                  |

b4fa15c4547acd4aa78107ec1880d87912a393f3f9423649e0e5fd8575cfc3ff

1. Given that the broader general merchandise market remains down and consumer spending is shifting towards basic needs, how confident are you in your strategy to focus on higher-priced, premium products, and what gives you confidence that this will drive sustainable top-line growth?  **[NWL_3404002_3]** 

2. You mentioned meaningful improvements in gross margin driven largely by FUEL productivity efforts; can you provide more specifics on how these productivity gains were achieved, and how sustainable they are in the long term?  **[NWL_3404002_4]** 

3. With the significant investments in advertising and promotion increasing from about 4% to nearly 5% of sales and a potential target of 6% to 7%, how do you plan to balance this increased spend with the need to improve operating margins, and what ROI are you expecting from these investments?  **[NWL_3404002_10]** 

4. Despite sequential improvements, some of your key segments like Outdoor & Recreation are still experiencing significant declines; what specific strategies are you implementing to turn around these underperforming segments, and what is the realistic timeline for seeing positive growth?  **[NWL_3404002_2]** 

5. The core sales guidance range for the fourth quarter is quite wide, and there's mention of uncertainties like consumer dynamics and upcoming elections; how are these factors impacting your ability to provide more precise guidance, and what contingency plans do you have in place to mitigate risks from potential macroeconomic volatility?  **[NWL_3404002_8]** 

debf395917a1c58c4b2f284a3c8b8d5e9f2c07063cefdfeee2296255506e9043

- **The Outdoor & Recreation segment is facing significant challenges, and its turnaround is expected to take longer and may lag behind other segments**, due to deficiencies in innovation, brand building, and retail excellence capabilities. This could negatively impact overall company performance.  **[NWL_3372910_14]** **[NWL_3372910_13]**
- **Consumer spending remains under pressure due to inflation**, with durable and discretionary categories expected to remain under pressure in 2024. **The company's return to growth is heavily dependent on market conditions improving in 2025**, which is uncertain, introducing risk into their projections.  **[NWL_3372910_11]** **[NWL_3372910_10]**
- **The amendment of the company's credit agreement to include additional covenants** suggests potential concerns about financial health or liquidity constraints, indicating a need for additional financial flexibility, which could impact operations and investor confidence.  **[NWL_3372910_8]**

2019899d1058b1ce39c2b68773765214148fa5895b7a9bb155181e61b16c92f8

- **Uncertainty in Achieving Sustainable Top-Line Growth**: Despite sequential improvements, Newell Brands has not yet returned to sustainable profitable top-line growth and acknowledges it is premature to provide guidance due to macroeconomic uncertainties. The company states, "*we are acutely aware that we have set out a goal of returning the company to sustainable profitable top-line growth... I expect that we're going to get to top line growth at some point during next year, during 2025, but it's a little premature for us to give guidance at this point given the uncertainty in the macro context.*"  **[NWL_3404002_15]**
- **Continued Underperformance in the Outdoor & Recreation Segment**: The Outdoor & Recreation segment, including iconic brands like **Coleman**, remained significantly down with core sales declining **16.8%** year-over-year in the third quarter. The company admits this segment "*is going to take the longest to turn around*" and meaningful innovation impact is expected in **2026**.  **[NWL_3404002_2]** ,  **[NWL_3404002_7]**
- **Profitability Driven by Cost Savings Amidst Underutilized Capacity**: The company's recent profit improvements have been driven largely by cost reduction efforts and productivity savings, rather than revenue growth. Newell Brands' **capacity utilization is roughly 40%**, indicating significant underutilization. The CFO acknowledges, "*I'm not sure we're going to be able to drive EBITDA growth at a 22% rate... I think we can drive very strong EBITDA growth going forward.*"  **[NWL_3404002_14]** ,  **[NWL_3404002_17]**

d7792212e1d153eccf7d8fac2e9e552f6c83267097ec4a5586b0b6584c1f3727

- The company expects the categories in which they compete to decline in all four quarters of 2024 and is not anticipating a return to growth during this period, suggesting continued headwinds for sales growth.  **[NWL_3381129_11]**
- The Outdoor & Recreation business continues to underperform, with significant capability gaps and innovations not expected to impact the market until 2025, delaying potential improvements in this segment.  **[NWL_3381129_6]**
- In prior years, the company has had to revise guidance down multiple times, raising concerns about the reliability of their forecasts and the potential for future downward revisions.  **[NWL_3381129_7]**

14fe9760833cbe82cb8865540a0960e2ec3bf76c4cac21be9f80584f623a1cc9

- **The Outdoor & Recreation (O&R) segment has significantly underperformed, with around **eight consecutive quarters of double-digit declines**, and its turnaround is expected to take **multiple years**. This segment requires substantial restructuring, including restaffing leadership and shifting brand strategies, which may face execution risks.**  **[NWL_3394677_13]** ,  **[NWL_3394677_11]**
- **Pricing benefits are expected to decline in the second half**, increasing reliance on volume growth amid a challenging macroeconomic environment. The company acknowledged that **"the pricing benefit in the back half of this year will be lower than in the front half,"** necessitating a focus on volume in categories expected to remain down low single digits.  **[NWL_3394677_16]**
- **Increased promotional pressure and excess inventory in certain categories, particularly in Outdoor & Recreation, could impact margins.** Retailers are requesting more promotions, especially in segments where competitors are liquidating excess inventory, leading to higher promotional activity and potential margin pressure.  **[NWL_3394677_16]**

940944770e42cddd20b1d360b4062019d92f04c8499108be91a789b3085e9a84

1. **Sustainability of Profitability Improvements**  
   **Q:** Can profit gains continue even if growth remains uneven?  
   **A:** The company sees strong opportunities for profit improvement, expecting revenue to improve due to category growth and front-end capability investments.  **[NWL_3404002_13]**  They plan to drive margin improvement on both the gross margin and operating margin lines through productivity savings across the supply chain and back-office functions.  **[NWL_3404002_13]**  While a **22% EBITDA growth** in a year is exceptional, they are confident in continuing strong EBITDA growth and have reduced net debt-to-EBITDA from **6.5x to 4.9x** over the past five quarters.  **[NWL_3404002_13]** 

2. **Return to Sustainable Growth**  
   **Q:** When will the company return to sustainable growth?  
   **A:** The company is focused on returning to sustainable, profitable top-line growth.  **[NWL_3404002_15]**  They have invested in consumer insights, redesigned the innovation pipeline, and implemented a brand management model focused on their top 25 brands.  **[NWL_3404002_15]**  Sequential improvement is evident, with core sales decline improving from double digits last year to **down 1.7%** this quarter.  **[NWL_3404002_15]**  They expect to reach top-line growth at some point during 2025, though it's premature to give guidance given macroeconomic uncertainties.  **[NWL_3404002_15]** 

3. **COVID Demand Normalization**  
   **Q:** Is COVID demand normalization ending?  
   **A:** The company confirms that the pull-forward of demand during COVID and subsequent category decline are coming to an end.  **[NWL_3404002_13]**  They expect category growth dynamics to be better next year, contributing to improved market conditions.  **[NWL_3404002_13]**  Along with better market share due to innovation and brand investments, they are well-positioned for the future.  **[NWL_3404002_13]** 

4. **Tariff Risks and Supply Chain Diversification**  
   **Q:** How are tariffs affecting supply chain strategy?  
   **A:** The company has diversified its supply chain, reducing products sourced from China and sold in the U.S. from over **30% to below 15%**, aiming for below **10%** by the end of next year.  **[NWL_3404002_13]**  With strong U.S. manufacturing facilities, they could benefit if tariffs are implemented in certain categories.  **[NWL_3404002_13]**  Their primary residual tariff risk is in the Baby business, but these products have been exempted from tariffs in the past.  **[NWL_3404002_13]** 

5. **Category Performance Outlook**  
   **Q:** Will key categories return to growth?  
   **A:** The company expects categories like kitchen appliances to return to growth as the COVID pull-forward effect wanes.  **[NWL_3404002_9]**  Industry projections indicate these categories will see core sales growth next year.  **[NWL_3404002_9]**  Innovative products in Baby and Writing, such as the Graco SmartSense Bassinet priced at **$400** (compared to competitors at **$1,500**), and premium S-Gel pens at **$10**, are expected to drive growth.  **[NWL_3404002_9]**  A relaunch of Yankee Candle is also anticipated to boost Home Fragrance sales.  **[NWL_3404002_9]** 

6. **Distribution and SKU Rationalization Impact**  
   **Q:** How is SKU reduction affecting sales?  
   **A:** The company has reduced SKUs from over **100,000 to 20,000**, tripling revenue per SKU.  **[NWL_3404002_11]**  While SKU rationalization caused a distribution headwind in 2024, they expect distribution to become a positive driver of core sales in 2025.  **[NWL_3404002_10]**  They anticipate gaining distribution next year as they no longer have the headwind of exiting unattractive businesses.  **[NWL_3404002_10]** 

7. **Investment in Innovation and Advertising**  
   **Q:** How much is being invested in innovation and advertising?  
   **A:** Historically spending about **4%** of sales on A&P, the company increased this to nearly **5%** this year and expects long-term spending to be around **6–7%**.  **[NWL_3404002_10]**  They aim to be ROI-driven, ramping up spending consistent with innovation launches.  **[NWL_3404002_10]**  Despite increased A&P, operating margins improved by **200 basis points** through gross margin enhancements.  **[NWL_3404002_10]** 

8. **Cost Savings Initiatives**  
   **Q:** What savings are expected from cost initiatives?  
   **A:** The FUEL productivity program is generating over **6%** cost of goods sold takeout this year, significantly improving gross margins.  **[NWL_3404002_17]**  This program continues into next year with expectations for further gains.  **[NWL_3404002_17]**  They also see opportunities in back-office efficiencies, including implementing AI in customer and consumer service functions.  **[NWL_3404002_17]** 

9. **Competitive Landscape Impact**  
   **Q:** How does a new competitor affect your business?  
   **A:** The company views the entry of a strong innovator as positive, validating their strategy focused on innovation and branding.  **[NWL_3404002_16]**  It demonstrates that their categories respond well to these efforts and shows what's possible with their leading brands.  **[NWL_3404002_16]** 

10. **Retail Inventory and Shipping Dynamics**  
    **Q:** Are retailer behaviors impacting sales forecasts?  
    **A:** The wide guidance range for Q4 is due to retailer shipping windows' timing, not inventory destocking.  **[NWL_3404002_8]**  Retailer inventories are in a good place, but inventory intake for shelf resets doesn't align neatly with fiscal quarters.  **[NWL_3404002_8]**  They expect the market to remain down low single digits during the holiday season, with consumers spending more on essentials than general merchandise.  **[NWL_3404002_8]** 

37e209e951a91c39f95b9b3542dae6a3562ba9224baef4c16b98f8538ec2f90b

- Newell Brands is launching **8 major innovations (Tier 1 and Tier 2 initiatives) in 2024**, compared to **zero in 2023**, expected to drive top-line growth and improve gross margins; the first, **Sharpie Creative Markers**, has already started shipping, indicating progress in their innovation pipeline.  **[NWL_3372910_7]** **[NWL_3372910_14]**
- The company has significantly **upgraded talent and operational capabilities**, which is expected to lead to **market share gains in more of their top brands** in 2024 and beyond, as the new strategy begins to show results.  **[NWL_3372910_7]** **[NWL_3372910_17]** **[NWL_3372910_16]**
- Newell Brands' **international business is expected to grow mid-single digits** in 2024, contributing positively to overall company performance, due to process simplifications and structural changes made.  **[NWL_3372910_7]** **[NWL_3372910_9]**

6f1af853808845456af2188d515e8c091f2d0bce624dd6d9cff25b0d050f2dff

- **Newell Brands achieved positive operating cash flow of $32 million in Q1 2024**, compared to a use of $77 million in Q1 2023, marking the first positive first quarter operating cash flow since 2020 and only the second since 2016, indicating improved financial strength and better cash flow management.  **[NWL_3381129_5]**
- The company's **new strategy is delivering significant improvements** in gross margin, operating margin, and cash flow, with the CEO expressing optimism about the positive results and future growth prospects.  **[NWL_3381129_18]** **[NWL_3381129_7]**
- **Three business units—Writing, Baby, and Commercial—have returned to growth**, driven by strong innovation, marketing efforts, and new distribution gains, positioning Newell Brands for market share gains even in flat markets.  **[NWL_3381129_8]**

46c297fb446f6896c253e514431627ae4817cbc91348b34c7ef4c7ac9fe62d37

- Newell Brands' trailing 12-month EBITDA has increased by **22%**, driven by productivity improvements in the supply chain and centralization, as well as exiting unprofitable businesses, leading to significant margin expansion and a stronger portfolio.  **[NWL_3404002_11]** **[NWL_3404002_14]**
- The company is showing sequential improvement in core sales decline, from double digits last year to only **1.7% decline** this quarter, and is gaining market share in more of its top 25 brands, indicating progress towards sustainable top-line growth expected in **2025**.  **[NWL_3404002_15]**
- After exiting unprofitable businesses, Newell expects distribution to be a positive driver in **2025**, plans to increase A&P investment from historical **4%** to **6-7%** over time to support innovation, while achieving higher operating margins through gross margin improvements and overhead reductions.  **[NWL_3404002_10]**

0878b41502151940f0065f4e7eb217be55e40d98f98eb913a79adfedeb820b99

- **Newell Brands has restaffed the leadership team in its Outdoor & Recreation segment and expanded the focus of the Coleman brand to include a broader range of outdoor activities beyond camping, tripling the total addressable market.** The company has also strengthened its innovation pipeline in this segment, expecting sequential improvement starting in Q3 and acceleration in 2025 and 2026.  **[NWL_3394677_13]**
- **The company expects increased contribution from new product innovations, stronger traction from its new business development group leading to distribution gains, and improved international performance to drive better core sales in the second half of the year.** These factors are expected to result in market share gains, particularly during the back-to-school season.  **[NWL_3394677_9]** **[NWL_3394677_18]**
- **Newell Brands has significantly reduced its dependency on China sourcing from 35-40% during the previous tariff increase to 15% currently, with plans to reduce it to less than 10% by the end of next year.** This proactive shift reduces tariff risks and supply chain vulnerabilities, potentially improving margins and mitigating risk.  **[NWL_3394677_19]** **[NWL_3394677_11]**

0f7e30211adcc2faba772a50b0d2684bab27b1fc8210905ca0eae1dc2977ebbe

Newell Brands Inc (NWL)

Financials