OLLI - Can Newell Brands' Strategic Initiatives Boost the Stock? | Benzinga
Newell Brands Inc. (NASDAQ: NWL) has been witnessing excellent progress on its five major operational and financial priorities. In the recent quarter, the company successfully operationalized its new operating model and continues to execute its strategy, which focuses on investing in innovation, brand building, and go-to-market excellence in its largest and most profitable brands and markets.
NWL is gaining from its productivity and pricing actions, which aided margin expansions in first-quarter 2024. It witnessed normalized gross margin expansion of 410 basis points (bps) year over year to 31.2%, marking the third consecutive quarter of expansion. The normalized operating margin increased 220 bps year over year to 4.6%, while normalized EBITDA rose more than 30%.
The company has been experiencing stronger cross-functional partnerships leading to more agile and efficient decision-making, and streamlined ways of working. These enhancements are essential for NWL's transition into a high-performing, innovative and inclusive organization.
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Newell Brands is actively boosting its productivity and efficiency through productivity plans, automation initiatives and the full implementation of Project Ovid. Additionally, it is exploring opportunities to optimize the category mix within each business unit. Its Project Phoenix, which aims at reducing overhead costs and streamlining the operating model, bodes well.
With a focus on reducing overhead costs, streamlining the operating model and centralizing supply-chain ...