US company Mativ's sales rise 10.6% in Q1 FY24

American firm Mativ Holdings’ sales were $500.2 million in the first quarter of fiscal 2024, an increase of 10.6 per cent sequentially versus the fourth quarter of 2023, and a decrease of 8.9 per cent versus the prior year, reflecting sequential volume recovery.

In the first quarter of fiscal 2024, adjusted income was $1.1 million, adjusted EPS was $0.02, and adjusted EBITDA was $45.8 million. Adjusted EBITDA was down 6 per cent versus the prior year, as impacts from lower volumes and higher production costs more than offset net benefits of input costs/selling price and synergies realisation, the company said in a press release.

"As expected, we saw meaningful sequential improvement in volume in Q1. And while EBITDA was slightly lower than Q4, the sequential decrease was primarily due to higher cost inventories, which do not repeat. Volume recovery is continuing into Q2, and we continue to believe that we will deliver meaningfully improved EBITDA year-over-year for the remainder of 2024,” said chief executive officer Julie Schertell.

"Earlier this year, we initiated an organisational restructuring initiative that will reduce our corporate costs and create a more streamlined business reporting structure. This enables a more agile organisation, and we expect will reduce non-operating costs by up to $20 million annually as we exit 2024. These decisions, coupled with actions we took in 2023 to divest Engineered Papers, consolidate our footprint, and invest in new assets in filtration and release liners support future top line growth and increase our operating leverage as volume continues to recover,” explained Schertell.

"Less than two years after the merger, Mativ is a more agile and effective enterprise that engineers innovative solutions that connect, protect, and purify our world. We are relentless in our pursuit to reduce complexity and prioritize our efforts toward those activities that create the most value for our customers. As we continue to see improving demand, we remain confident that our decisions and actions over the past year will deliver incremental value to our customers and shareholders,” Schertell concluded.