In This Article:
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Total Revenue: $133.4 million, a 4% increase over last year's first quarter.
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Gross Profit: $32.8 million, up from $30.1 million in the year-ago period.
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Gross Profit Margin: 24.6%, compared to 23.4% in last year's first quarter.
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Operating Profit: $2.3 million, compared to an operating loss of $943,000 in Q1 2024.
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Net Income: $1.8 million, or $0.13 per diluted share, compared to a net loss of $1.2 million, or $0.08 per diluted share a year ago.
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Net Cash Provided by Operating Activities: $6.6 million, compared to $19.7 million in Q1 2024.
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Capital Expenditures: $516,000, compared to $942,000 in Q1 2024.
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Net Debt Position: $1.7 million, compared to $23.7 million at the end of the prior year period.
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Share Repurchase: 141,435 shares totaling $2.7 million.
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Dividends Paid: $1.6 million.
Release Date: April 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Hamilton Beach Brands Holding Co (NYSE:HBB) reported a 4% increase in total revenue for the first quarter of 2025 compared to the same period last year.
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The company's gross profit margin improved to 24.6% from 23.4% in the previous year, driven by favorable product mix and higher margin businesses.
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HBB's North American consumer markets, particularly the US, delivered solid growth, contributing significantly to the overall revenue increase.
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The company successfully launched new premium products under the Lotus brand, which are expected to capture a share of the $4 billion premium market.
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HBB's HealthBeacon business segment marked its third consecutive quarter of increasing patient subscriptions, indicating strong growth potential in the healthcare sector.
Negative Points
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The imposition of 20% tariffs by the US on Chinese imports and reciprocal tariffs have created significant uncertainty, impacting visibility into near-term trends.
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HBB has temporarily suspended its practice of providing guidance due to the unpredictability of trade negotiations and tariff impacts.
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The company experienced a decrease in net cash provided by operating activities, dropping to $6.6 million from $19.7 million in the previous year.
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International revenue saw slight declines, partially offsetting the gains in North America.
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The planned wind down of the licensing agreement with Wolf Gourmet is expected to temporarily drag on results.
Q & A Highlights
Q: Can you clarify your gross margin outlook with the tariffs and whether you expect a benefit beyond the 26% gross margin forecasted for this year? A: Sally Cunningham, CFO, clarified that while they are working to mitigate tariffs and accelerate supplier diversification, they do not have visibility to provide a specific outlook on gross margins going forward. The expectation is that diversification efforts will benefit margins in 2026.