The Middleby Corporation (MIDD) Q4 2022 earnings summary

Executive summary

• FY22 net sales rose 24.1% to $4.03B; net earnings fell to $436.6M from $488.5M, with prior-year results including a $110.0M Welbilt termination fee.

• Growth reflected acquisitions, improved market conditions and pricing; excluding acquisitions and FX, sales increased 13.3%.

Financial highlights

• Net sales were $4.03B, gross profit $1.45B, operating income $639.6M and net earnings $436.6M in FY22.

• Diluted EPS was $7.95 versus $8.62 in FY21; diluted weighted-average shares decreased to 54.947M from 56.665M.

• Operating cash flow was $332.6M versus $423.4M; cash and equivalents ended FY22 at $162.0M.

Outlook and guidance

• Most Commercial Foodservice and Residential Kitchen backlog at year-end was expected to ship in 2023; Food Processing backlog was expected to be fulfilled by the end of FY24.

• Input costs were expected to remain elevated for some time; cash flows were expected to improve as inventory was managed to fulfill backlog and support future demand.

• Capital resources were considered sufficient for operations, debt service, capital spending and product development for the foreseeable future.