H.B. Fuller’s net revenue grew by 17.5% to reach almost $3.3 billion in 2021. The company’s three business units—Hygiene, Health and Consumable Adhesives (HHC); Engineering Adhesives (EA); and Construction Adhesives (CA)—all saw double-digit increases in net revenue for the year.
“The lessons we learned in 2020 became strengths in 2021 as we continued to manage through numerous challenges, including the ongoing COVID-19 pandemic, steadily increasing raw material, packaging and freight costs, and unprecedented supply chain constraints, while also meeting record levels of customer demand,” said a company contact. “In 2021, our board and leadership team took decisive steps to advance our strategy by reducing debt, acquiring small strategic assets, focusing on growth and service to our customers, and creating more sustainable and innovative products.”
Representing 45% of the company’s total 2021 net revenue, HHC’s revenue grew 10.5% over the prior year to reach nearly $1.5 billion. With 31 facilities, the segment serves markets such as packaging, hygiene, tapes and labels, and health and beauty.
EA’s net revenue represented 42% of the 2021 total. The segment achieved the strongest increase of the three segments for the year, jumping by 26% to reach almost $1.4 billion. EA, which operates 24 facilities, sells into the energy, electronics, transportation, and wood and composites industries, among others.
With 13% of 2021 revenue, CA operates 12 facilities and six dedicated technology centers. The segment saw sales increase by 17.4% to $443.5 million. It is active in markets such as flooring, roofing, and utilities and infrastructure.
“We have maintained the strong momentum in 2021 and delivered a strong start to 2022,” the company source said. “Our financial results in the first quarter of 2022 are the direct result of our team’s ability to pivot when faced with external challenges and to maintain priority focus on our customers’ experiences doing business with H.B. Fuller. Driven by strong customer demand for H.B. Fuller’s adhesive solutions, organic revenue in Q1 2022 was up 21% compared to last year, and net revenue increased by 18% for the same period. These results are due to outstanding operational execution, volume growth, and strong pricing performance.
“Looking ahead, our planning assumptions are that demand will remain positive across our business units this year, although we have factored into our outlook the potential for some slowing in volume growth as the year progresses, reflecting uncertainty around inflation, supply constraints and other economic impacts of the war in Ukraine. We expect that raw materials will continue to be tight throughout the end of the year and raw material inflation will remain elevated against a strong demand backdrop. We expect to more than offset raw material and delivery expense increases through pricing actions. Overall, when considering our strategic pricing actions, coupled with the solid volume growth, we now expect full year organic revenue growth of between 15% and 20% versus 2021.”
Note: Opening photo courtesy of H.B. Fuller.
No. 4 | H.B. FullerSt. Paul, Minn.
CEO: Jim Owens
Sources: company contact, annual report, investor presentation
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