H.B. Fuller Company (NYSE:FUL) Q1 2023 Earnings Conference Call March 30, 2023 10:30 AM ET
Company Participants
Steven Brazones - Investor Relations
Celeste Mastin - President and Chief Executive Officer
John Corkrean - Executive Vice President and Chief Financial Officer
Conference Call Participants
Ghansham Panjabi - Baird
Vincent Anderson - Stifel
David Begleiter - Deutsche Bank
Lydia Huang - JPMorgan
Mike Harrison - Seaport Research Partners
Operator
Good morning. My name is Colby and I will be your conference operator today. At this time, I would like to welcome everyone to the H.B. Fuller Q1 2023 Earnings Conference Call. [Operator Instructions] Thank you. I will now turn the call over to Steven Brazones. You may begin.
Steven Brazones
Thank you, operator. Welcome to H.B. Fuller’s first quarter 2023 investor conference call. Presenting today are Celeste Mastin, President and Chief Executive Officer and John Corkrean, Executive Vice President and Chief Financial Officer. After our prepared remarks, we will have a question-and-answer session.
Before we begin, let me remind everyone that our comments today will include references to certain non-GAAP financial measures. These measures are supplemental to the results determined in accordance with GAAP. We believe that these measures are useful to investors in understanding our operating performance and to compare our performance with other companies. Reconciliation of non-GAAP measures to the nearest GAAP measures are included in our earnings release.
Unless otherwise noted, comments about revenue refer to organic revenue and comments about EPS, EBITDA and profit margins refer to adjusted non-GAAP measures. We will also be making forward-looking statements during this call. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially from these expectations due to factors covered in our earnings release, comments made during this call and the risk factors detailed in our filings with the Securities and Exchange Commission, all of which are available on our website at investors.hbfuller.com.
I will now turn the call over to Celeste Mastin. Celeste?
Celeste Mastin
Thank you, Steven, and welcome, everyone. In the first quarter of fiscal year 2023, the team executed exceptionally well to deliver solid first quarter results that were in line with our expectations despite challenging demand conditions, particularly in Construction Adhesives. The diversification of our portfolio enabled us to deliver stable organic sales. Even with these challenges, and diligent management of price and raw material dynamics drove significant gross margin improvement both year-on-year and sequentially. Overall, this resulted in a solid adjusted EBITDA performance and led to higher adjusted EBITDA margin year-over-year.