Although sales and profits fell in the second quarter, Hamilton Beach still sees revenues for the year coming in flat and operating income gaining against 2022 due to a stronger expected performance in the back half of 2023.
Net income was $110,000, or one cent per diluted share, versus $5.1 million, or 36 cents per diluted share, in the year before quarter.
Total revenue in the quarter was $137.1 million, down 7.1% year over year. Operating profit was $726,000 compared to $5.4 million, in the year-earlier period, the company reported.
Revenue decreased in Hamilton Beach U.S., Latin American and Canadian consumer markets primarily due to lower unit volume, partially offset by increased revenue in the Mexican consumer market, the company pointed out. In the United States, many retail customers managed overall inventory levels conservatively at the quarter’s start as inflation and high-interest rates stirred uncertainty about consumer demand.
Among noted company initiatives, Hamilton Beach pointed to expansion in Home Health and Wellness including, in the air purifier segment, the rollout of a True HEPA air purifier line under the licensed Clorox brand. In the water filtration segment, Hamilton Beach has created a new category, it maintained, with an electric countertop model launched under the licensed brand Brita Hub. In addition, the company is partnering with HealthBeacon in the home medical market. The initiative will leverage Hamilton Beach’s strength in brand equity, sourcing, logistics and new product development to create appliances that help consumers manage their health needs at home.
In a conference call Gregory Trepp, Hamilton Beach president and CEO, said the company still expects a solid full-year performance even with a soft first half, “with increased revenue in the second half of this year offsetting the decrease in the first half.”
He added performance in inventory, debt and cash flow have been stronger than originally anticipated, and noted that June generated strong results, setting the stage for a better second half of the fiscal year. Progress with strategic initiatives and new product placement underlie expectations of a strong second half, he said. This year, Hamilton Beach is introducing more than 40 new product platforms across an array of categories including high-demand segments such as single-serve coffee, personal blenders, ovens, grills, slow cookers and garment steamers, Trepp said.
