H.B. Fuller Co. reported financial results for its fourth-quarter and fiscal-year that ended December 3, 2022. Net revenue for fiscal-year 2022 was $3.75 billion, up 14% versus fiscal-year 2021. Organic revenue was up 17% year-on-year, with volume up 1% and the rest of the increase driven by higher year-on-year pricing. Unfavorable foreign currency exchange rates reduced net revenue growth by 5.8%, acquisitions increased net revenue growth by 1.6 %, and the extra week in the fiscal-year increased net revenue growth by 2%.

Net income attributable to H.B. Fuller for fiscal 2022 was $180 million, or $3.26 per diluted share. Adjusted net income attributable to H.B. Fuller was $221 million, or $4.00 per diluted share, up 15% compared to $3.47 per diluted share, in fiscal-year 2021. Adjusted EBITDA for fiscal-year 2022 was $530 million, up 14% versus adjusted EBITDA of $467 million in fiscal-year 2021.

Net revenue for the fourth-quarter of fiscal 2022 was $958 million, up 7% versus the fourth-quarter of fiscal 2021. Organic revenue was up 6.4% year-on-year, as strong pricing actions increased revenue by 11.4% and volume was down 5% due to a slowdown in end-market demand, particularly in construction adhesives, and softness in China due to more severe COVID-related lockdowns. Unfavorable foreign currency exchange rates reduced net revenue growth by 8.7%, acquisitions increased net revenue growth by 1.6%, and the extra week in the fourth quarter increased net revenue growth by 7.5%.

Gross profit in the fourth-quarter of fiscal 2022 was $248 million. Adjusted gross profit in the fourth-quarter of fiscal 2022 was $251 million. Adjusted gross profit margin of 26.2% decreased 90 basis points year-on-year. Raw material inflation and lower volumes, particularly in construction adhesives, offset higher pricing versus the prior year and resulted in lower gross profit margin.

Net income attributable to H.B. Fuller for the fourth-quarter of fiscal 2022 was $48 million, or $0.87 per diluted share. Adjusted net income attributable to H.B. Fuller for the fourth-quarter of fiscal 2022 was $58 million. Adjusted EPS was $1.04 per diluted share, down slightly year-on-year due to unfavorable foreign currency translation and higher interest rates.

Adjusted EBITDA in the fourth-quarter of fiscal 2022 was $141 million, up 5% compared with the fourth-quarter of last year. Adjusted EBITDA margin was relatively stable year-on-year. The increase in adjusted EBITDA was driven by strong pricing actions and good expense management, which offset the impact of significantly higher raw material costs and unfavorable foreign currency translation.

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