H.B. Fuller has reported a net income attributable to the company of $37.62m for the third quarter (Q3) of 2023, down by 19% from $46.49m in Q3 2022.

For this quarter, which ended on 2 September 2023, basic and diluted earnings per common share attributable to Fuller were $0.69 and $0.67, respectively.

The company’s net revenue for the reported quarter was $900.63m, representing a 4.3% year-on-year (YoY) decline from $941.23m in Q3 last year.

Organic revenue for the quarter was down by 7.4% on a YoY basis due to lower volumes, partly offset by favourable pricing.

Gross profit for Q3 2023 totalled $263.47m while the same was $249.16m in the previous year’s Q3.

Adjusted gross profit for the reported period was $270.26m against $249.81m in the same period of 2022 while adjusted gross profit margin was 30%, which increased 350 basis points YoY from 26.5%.

Fuller has attributed this increase in its adjusted gross profit margin to pricing and raw material cost increases, general cost reductions, as well as restructuring benefits.

Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) in Q3 2023 was $155.79m, a 13% YoY increase from $137.70m in Q3 2022.

Meanwhile, adjusted EBITDA margin was 17.3% in Q3 2023 against 14.6% in Q3 2022.

Fuller president and CEO Celeste Mastin said: “In the third quarter we successfully drove a double-digit increase in adjusted EBITDA year-on-year and increased adjusted EBITDA margin meaningfully, demonstrating the strength of our business model and ability to increase profitability regardless of market conditions.

“Looking ahead, we are encouraged that the unusual global customer destocking phenomenon that has taken place across nearly all end markets is abating.

“As demand conditions normalise, we expect the continued strength of our innovation pipeline, coupled with the operating leverage created through our restructuring actions, to drive significant value for our business in 2024 and beyond.”