Neenah, Inc. (NYSE:NP), a leading global manufacturer of specialty materials, today announced updates on recent business developments and provided EBITDA growth guidance.
Key Updates:
*Restart of Brownville facility ahead of schedule
*Limited direct Russia/Ukraine business exposure
*Full-year 2022 Adjusted EBITDA on track to be $135-145 million, an increase of 15-25% over prior year
Neenah announced today the restart of its Brownville, New York manufacturing facility. The facility, which has been closed as a result of a recent fire, is resuming production earlier than anticipated. Although the restart will not materially reduce the estimated $3.0 million impact on the first quarter, it provides additional capacity to address the elevated level of demand and reduces supply uncertainty for Neenah’s customers.
Secondly, in light of the rapidly deteriorating events in Ukraine, Russia and Belarus, Neenah is confirming its limited direct exposure to the region. The Company does not have facilities or inventory located in these countries. Annual sales in the region have historically been less than 1% of overall revenue, and the Company does not have meaningful exposure to raw materials sourced from these countries. Like many businesses, however, the company may experience ancillary impacts, including elevated energy prices, which the company is prepared to manage.
“Neenah continues to execute on its strategy, resulting in top-line growth early in 2022, with sustained demand and acceleration of pricing initiatives. Given the uncertainties caused by the war in Ukraine and by a challenging supply chain and manufacturing environment, we are issuing guidance for the full year of 2022 to help provide clarity on our expectations and reflect the confidence we have in the strength of our underlying business,” said Julie Schertell, Chief Executive Officer. “While, as expected, the first quarter will be a challenging comparison to prior year, we are encouraged by the early restart of the Brownville facility and we remain confident in the advancement of our efforts throughout 2022.”
Full-year Adjusted EBITDA growth guidance assumes the following:
- Continued strong demand across our portfolio
- Pricing, including energy and freight surcharges, continues to be implemented to offset volatile input costs
- Manufacturing and supply chain challenges from labor and raw material availability improve as the year progresses, and cost containment initiatives take hold
- Realization of the benefits of key strategic actions, including the Appleton facility closure and ITASA acquisition
- Raw material and other key cost drivers begin stabilizing
- Neenah does not experience significant or lasting impacts from the war in Ukraine, energy, or transportation costs