Hamilton Beach Brands Company ( (HBB) ) has released its Q4 earnings. Here is a breakdown of the information Hamilton Beach Brands Company presented to its investors.
Hamilton Beach Brands Holding Company is a prominent designer, marketer, and distributor of small electric household and specialty housewares appliances, operating primarily in the consumer and commercial markets. The company recently announced its financial results for the fourth quarter and full year 2024, highlighting a year of growth and strategic advancements.
In 2024, Hamilton Beach Brands reported a 4.6% increase in revenue, reaching $654.7 million, with a notable expansion in gross margin by 300 basis points to 26.0%. The company also achieved a net income of $30.8 million, up from $25.2 million the previous year, and generated $65.4 million in cash flow from operations. The fourth quarter saw a 3.3% rise in revenue to $213.5 million, although gross margin slightly decreased by 70 basis points.
Key financial metrics for the year included a 23.1% increase in operating profit to $43.2 million and a reduction in net interest expense due to lower borrowings. The acquisition of HealthBeacon contributed to revenue growth, while strategic share repurchases and dividend payments were made possible by strong cash flow. Despite a slight decrease in cash flow from operations compared to 2023, the company ended the year with a net cash position.
Looking ahead, Hamilton Beach Brands anticipates modestly outperforming the small kitchen appliance industry’s expected low-single-digit growth in 2025. The company aims for mid-single-digit revenue growth, with operating profit projected to increase at a faster rate due to expense leverage and strategic advertising investments. Management remains optimistic about maintaining gross profit margins at 2024’s record levels.