Newell Brands (NWL) 2024 Deutsche Bank dbAccess Global Consumer Conference summary

Strategic transformation and execution

• Launched a multi-year turnaround plan focused on top-line growth, margin expansion, and cash flow improvement, underpinned by a comprehensive capability assessment and new operating model.

• Streamlined leadership, reducing VP+ positions by 22% and upgrading 24% of remaining VP+ roles, with significant changes at VP and above levels and a new brand management model for top brands.

• Implemented a high-performance, high-accountability culture with new corporate values, upgrading 50% of marketing talent and embedding an innovative, inclusive, and performance-driven culture.

• Centralized key functions including supply chain, finance, HR, and sales, standardized international operations, and created a global brand management organization and new business development team.

• Reduced headcount by 17% and eliminated over 25% of brands, targeting a portfolio of 50 brands and cutting SKUs by ~80% to 20,000 by year-end for operational simplicity.

Growth drivers and innovation

• Focused innovation pipeline on top 25 brands, premiumization, and targeting Millennial and Gen Z consumers, with launches like Sharpie Creative Markers and Paper Mate InkJoy Gel Bright generating over 1B media impressions and strong influencer engagement.

• Shifted portfolio to mid and high price point segments, exited low-margin SKUs, and implemented strategic pricing actions and revenue growth management, with further rollout planned for 2026.

• Established a new business development team, identifying over $500 million in incremental revenue opportunities and securing new distribution wins across multiple channels.

• International business, now 37% of revenue, returned to core sales growth and operates at higher margins, leveraging the "One Newell" approach and a unified sales force.

• Rebuilding the innovation funnel, aiming for every top brand to have a major initiative annually and eliminating small/dilutive projects.

Margin expansion and productivity

• Achieved record productivity savings, expecting 6% of COGS savings in 2023-2024, double prior years, through plant network optimization, procurement, and distribution improvements.

• Closed four plants and four distribution centers, reduced manufacturing headcount by 17% since Q1'22, and improved capacity utilization targets to 70% by 2026.

• Reduced supply partners by 15% last year and another 10% this year, targeting fewer than 19,000 vendors by end of 2024, with 2–3% COGS savings expected annually.

• Consolidated North American distribution, targeting 20 sites by 2026, reduced square footage by 20%, and improved fill rates and truckload efficiency.

• Continued office space and legal entity rationalization, with office space reduced by over 15%, office count by over 10% in 2023, and $30 million in overhead savings expected for 2024.