H.B. Fuller Reports Strong Organic Growth in All Operating Segments
H.B. Fuller Co. reported financial results for its third quarter that ended August 27, 2022. Net revenue for the third quarter of fiscal 2022 was $941.2 million, up 13.8% versus the third quarter of fiscal 2021. Robust pricing actions to recover unprecedented raw material cost inflation increased net revenue by 18.7%. As expected, volume was down 0.3%, a result of slowing economic conditions offset by market share gains. Organic revenue increased 18.4% versus the third quarter of fiscal 2021. Unfavorable foreign currency exchange rates reduced net revenue growth by 6.6%, while acquisitions increased net revenue growth by 2%. On a year-on-year basis, hygiene, health, and consumable adhesives organic revenue increased 22.9%, engineering adhesives organic revenue increased 17.5%, and construction adhesives organic revenue increased 6.9%.
Gross profit in the third quarter of fiscal 2022 was $249.2 million. Adjusted gross profit in the third quarter of fiscal 2022 was $249.8 million. Adjusted gross profit margin of 26.5% increased 280 basis points year-on-year. Strong pricing actions to recover raw material cost inflation, as well as operating efficiencies, drove adjusted gross margin higher year-on-year.