Hamilton Beach Brands Holding Co. kept sales steady year over year while cutting losses in its first quarter.
The company reported that the net loss was $1.2 million, or eight cents per share, versus a net loss of $4.8 million, or 34 cents per share, in the year-before period.
Revenue was $128.3 million, matching the year-prior quarter. Operating loss was $943,000, Hamilton Beach Brands noted, versus $5.1 million in the year-earlier period.
Revenue benefited from an 8% advance in unit volume and favorable product mix. Decreased selling prices versus a year ago offset the benefits, the company indicated. In consumer operations, revenue gained in the Mexican and Latin American markets but decreases in the United States and Canada offset increases elsewhere.
Among the highlights of the quarter, the company’s Hamilton Beach Health subsidiary completed the acquisition of HealthBeacon PLC, a medical technology company and strategic partner since 2021.
Hamilton Beach Holdings added it expects progress with its six strategic initiatives to drive revenue growth, expand margins and generate strong cash flow over time. The initiatives focus on increasing sales of innovative, higher priced, higher margin products in Hamilton Beach Holdings North American market.
According to the company, activity regarding the individual initiatives includes:
- Accelerate Growth of Hamilton Beach Health. Newly acquired HealthBeacon, which enables patients to manage chronic conditions that require the use of injectable medications at home, develops digitally connected devices distributed through specialty pharmacies and conventional pharmaceutical companies. Hamilton Beach Health will scale up HealthBeacon, adding new patients through existing pharmacy customers, attracting new pharmacy customers and increasing the number of conditions that are treated using the system while exploring additional collaborations.
- Drive Core Growth. The company is looking to drive gains in its flagship Hamilton Beach and Proctor Silex brands, in part via digital marketing, social media advertising and influencer campaigns. The company reported a number of incremental placements of core products secured in 2023 and this year across multiple categories and retail customers should benefit the company throughout 2024.
- Gain Share in the Premium Market. Increase participation in the premium market by developing, licensing and adding brands to a portfolio that features Hamilton Beach Professional, Weston, Wolf Gourmet, Chi, Clorox True HEPA and Brita Hub, as well as Bartesian cocktail makers and Numilk plant-based milk makers for which the company has exclusive multi-year agreements to design, sell, market and distribute.
- Lead in the Global Commercial Market. The company is working to build strength in the commercial sector including with e-commerce, which is becoming more important in that market.
- Accelerate Digital Transformation. Invest to gain share in the e-commerce market for consumer and commercial products employing robust digital marketing to increase awareness and sell-through of products using online product content, search engine optimization and advertising, attracting favorable reviews and strong star ratings, and applying social media strategies.
- Leverage Partnerships and Acquisitions. Identify and secure businesses with a strategic fit with the company’s portfolio in part by pursuing additional trademark licensing agreements, strategic alliances and acquisitions to drive growth in all markets.
