Newell Brands (NWL) Barclays 18th Annual Global Consumer Staples Conference 2025 summary

Strategic transformation and capability enhancement

• Undertook a comprehensive capability assessment, identifying key areas for improvement and implementing a new strategy and operating model in June 2023.

• Shifted to global segments managing P&L, upgraded talent, and fostered a high-performing, innovative, and inclusive culture.

• Achieved significant improvements in core sales growth rate, gross margin (up nearly 600 basis points in two years), and reduced net leverage.

• Focused on complexity reduction, AI-driven capability upgrades, and digital marketing efficiency, with digital asset creation up 500% at the same cost.

Market outlook and consumer trends

• Category growth for 2023 expected to be down about 2%, with no recent consumer shifts to alter this outlook.

• Lower- and middle-income consumers remain under pressure, driving value-seeking behavior, while high-income consumers are resilient.

• Optimism for improved category growth in 2024 as macro uncertainty lessens and interest rates are expected to decline.

Tariff management and supply chain strategy

• Reduced China-to-U.S. sourcing from 35% to under 10% by year-end, leveraging U.S. and Mexico manufacturing to mitigate tariff exposure.

• Established a trade expertise center for real-time tariff impact analysis and created free trade zones in the U.S.

• Tariffs expected to have a $155 million cash impact in 2023, with aggressive cost management and three rounds of pricing to offset effects.

• Secured $35 million in incremental sales from tariff-advantaged categories, with further growth expected in 2024.