Newell Brands (NWL) Barclays 19th Annual Global Consumer Conference summary

Turnaround strategy and sales growth

• Launched a turnaround strategy in 2023 focused on consumer insights, brand building, innovation, and go-to-market improvements, resulting in 2.3% core sales growth in the latest quarter, with seven of the top 10 brands and five of six business units growing, led by 5% U.S. core sales growth.

• Q3 guidance anticipates core sales growth of 2%-3%, with confidence in both top-line and bottom-line guidance.

• Distribution gains are being sustained by increased POS and consumer offtake, with eight of the top 10 brands increasing their sequential POS growth rate.

• Distribution remains a multi-year core sales driver, with significant runway as many brands still have distribution share below market share.

• All business units have opportunities for further distribution gains, with a multi-year journey ahead to reach fair share.

Innovation and product launches

• Introduced a four-tier innovation system, with tier 1 and 2 representing the largest, most impactful launches expected to drive market share and revenue growth.

• On track to launch 25 tier 1 and 2 innovations this year, the highest since the system began, spanning all business units and top brands.

• Innovations are supported for several years, creating a cumulative effect that is expected to be a tailwind for revenue.

• Notable launches include Graco EasyTurn car seats, Coleman Snap 'N Go cooler, and Rubbermaid Brilliance Glass, all outperforming expectations and driving higher margins.

• Innovation strategy focuses on differentiated, consumer-preferred products that drive trade-up and gross margin accretion.

International business and segment performance

• International sales were down 2.7% in Q2 but are expected to return to growth in Q3, with significant white space and smaller market shares compared to the U.S.

• Consolidation into a single sales force, legal entity, and IT system is enabling more effective cross-selling and international growth.

• International represents 39% of total business, with top 10 countries accounting for 90% of international sales.

• Commercial segment is later in the innovation cycle but has new launches, including BRUTE trash cans and Spontex Flex & Wash, expected to drive a return to growth.