US-based adhesive manufacturer HB Fuller has reported $941.2m in net revenue for the third quarter (Q3) of fiscal 2022 (FY22), up by 13.8% year-on-year (YoY) from the corresponding period of last year (FY21).
For the three months to 27 August, the company’s gross profit was $249.2m and its adjusted gross profit stood at $249.8m.
HB Fuller reported a gross profit margin of 26.5%, an improvement of 280 basis points (bps) from last year.
The company generated a net income of $46.5m in the quarter, compared with $31.6m in Q3 2021.
Its adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 24.4% to $137.7m YoY, while its adjusted EBITDA margin increased by 120bps to 14.6%.
HB Fuller president and CEO Jim Owens said: “Our strong organic growth and improved profitability in the third quarter serve as additional proof points that our strategy is working, particularly in light of continued raw material inflation and currency headwinds from the strong dollar.
“Our innovation-driven market share gains and mix shift to a more highly specified product portfolio through innovation and strategic mergers and acquisitions (M&A), coupled with our responsible pricing actions, are delivering significant improvement to our financial results.
“We have very effectively managed both economic and currency headwinds and we remain on track to achieve significant double-digit EPS growth and EBITDA growth at the top end of the range we provided in the first quarter.”
For the full year, HB Fuller expects an organic revenue growth of between 17% and 18%.
The company has also increased its adjusted EBITDA for FY22 from the previously provided range of $530m-550m to $540m-550m.
Earlier this year, HB Fuller partnered with tape application equipment manufacturer Enimac to support the e-commerce packaging sector.
The companies will combine their market and application experience with ‘advanced’ knowledge of pressure-sensitive adhesive tapes.