Newell Brands (NWL) Barclays 17th Annual Global Consumer Staples Conference summary

Market and consumer trends

• COVID drove a surge in demand in 2021, followed by declines in 2022 and 2023 as purchase cycles normalized and inflation pressured discretionary spending.

• Category declines have moderated from high single digits last year to low single digits this year, with expectations for improvement in 2025.

• Retailer destocking, a headwind last year, has abated, and retail inventories are now healthy.

• Consumers remain under pressure, especially lower-income groups, but compelling product innovation continues to drive strong demand across income levels.

• Successful product launches, such as Sharpie Creative Markers and Oster Perfect Brew, demonstrate willingness to spend on innovation.

Strategic transformation and operational improvements

• Portfolio streamlined from 80 to 50 brands, focusing on the top 25 brands and top 10 countries for 90% of sales and profit.

• Shifted focus to mid- and high-price point products and Millennial/Gen Z consumers, with enhanced brand management and consumer insights.

• Centralized supply chain and back office now cover 100% of operations, driving cost efficiencies and productivity.

• New corporate values emphasize performance, innovation, and inclusivity, supporting a cultural turnaround.

• Sequential improvement in top-line performance and gross margin, with EBITDA up 10% and leverage ratio reduced by a full turn.

Segment performance and growth drivers

• International business (40% of revenue) has returned to core sales growth and is expected to accelerate.

• Learning & Development segment, the most profitable, is growing and supported by a strong innovation pipeline.

• Home & Commercial segment is delivering gross margin improvement, with expectations for sequential top-line gains as innovation ramps up.

• Outdoor & Recreation segment undergoing leadership and operational changes, with innovation pipeline expected to impact results from 2026.