Compass Diversified ( (CODI) ) has realeased its Q3 earnings. Here is a breakdown of the information Compass Diversified presented to its investors.
Compass Diversified (NYSE: CODI) is a company that owns and manages a diverse portfolio of middle-market businesses across the industrial, branded consumer, and healthcare sectors. It utilizes its permanent capital base and disciplined approach to create value in its subsidiaries.
In its third-quarter 2024 earnings report, Compass Diversified reported robust financial performance despite challenging macroeconomic conditions. The company saw significant growth in its Branded Consumer sector and stabilizing trends in its Industrial sector, contributing to an overall increase in sales and profitability.
The company reported net sales of $582.6 million, representing an 11.8% increase from the previous year, with pro forma sales growth of 6.6%. Notably, the Branded Consumer sector experienced a 9.2% increase in sales, while the Industrial sector saw a modest 1.2% growth. Compass Diversified also turned around its financial results, achieving a net income of $31.5 million compared to a net loss in the same period last year. Adjusted EBITDA rose by 28% to $114 million, reflecting strong performance in key subsidiaries such as Lugano and BOA.
Recent strategic moves include the acquisition of Lifoam Industries by subsidiary Altor Solutions, the initiation of a $100 million share repurchase program, and the appointment of Stephen Keller as CFO. These initiatives are expected to strengthen the company’s position and enhance shareholder value.
Looking ahead, Compass Diversified is optimistic about its growth trajectory, raising its financial outlook for 2024. The company anticipates further growth in its Branded Consumer and Industrial segments, with a focus on maximizing long-term value and cash flow generation through strategic acquisitions and operational efficiencies.
