Newell Brands’ revenues for the third quarter rose by 5.1 percent to $2.7 billion, as a core sales gain of 7.2 percent was partially offset by currency headwinds and divested businesses.
The management said it recorded broad-based growth, which was better-than-expected, underpinned by strong consumption, and significant improvement in operating margin and cash flow generation.
In the Outdoor and Recreation segment, which includes Coleman and Campingaz, sales reached $383 million, up from $356 million for the third quarter of 2019. The segment’s adjusted operating income was $46 million, compared with $37 million last year.
Overall, the management said that working capital initiatives resulted in a substantial reduction in the company’s cash conversion cycle time, with operating cash flow nearly doubling year-over-year during the first three quarters of 2020. For the full year, it expects to generate operating cash flow of $1.1 to $1.2 billion.
The gross margin expanded by 0.9 percentage points to 33.9 percent due to measures to reduce costs, which more than offset the unfavorable impact from business unit mix, Covid-related expenses and inflation.
Net income reached $304 million, compared with a net loss of $626 million in the third quarter of 2019, when the company faced $1.1 billion of impairment charges for goodwill and other intangible assets.