Newell Brands (NWL) Morgan Stanley Global Consumer & Retail Conference summary

Organizational transformation and strategy

• Completed major organizational changes, including brand management, centralized U.S. selling, and international restructuring to streamline operations and drive efficiency.

• Upgraded talent and implemented a new performance management system with goals tied to strategy for all employees.

• Project Phoenix and realignment targeted $285–$340 million in overhead cost reductions, with most completed.

• Shifted company culture to emphasize passion for winning, leadership, and ownership alongside integrity and teamwork.

• Five quarters of improved results: gross margin up 400–500 bps, EBITDA up 22%, and sequential core sales growth.

Market environment and growth outlook

• 2023 saw high single-digit market declines and retailer inventory reductions; 2024 markets down low single digits with stable retailer inventories.

• Expecting flat markets in 2025 and no significant retailer inventory changes, with potential for a slight base period bounce in Outdoor and Rec.

• Innovation pipeline ramping up: 1 tier-one launch in 2023, 8 in 2024, and 15 planned for 2025.

• Anticipates return to positive core sales growth in 2025 as new capabilities and innovations take hold.

Pricing, mix, and consumer trends

• U.S. input cost inflation remains low; productivity improvements offset inflation, limiting need for price increases domestically.

• Internationally, pricing actions planned in 2025 to address FX-driven transactional impacts.

• Growth to be driven by mix shift toward mid- and high-priced products, with affluent consumers driving category growth.

• Lower-income consumers are not trading down but reducing participation; category mix is moving higher.

• Promotional environment remains stable, with no significant changes in activity.