Hamilton Beach Holding Co. boosted net income significantly in the third quarter as sales also gained and critical initiatives proceeded.
Net income was $10.3 million, or 74 cents per diluted share, versus $5.9 million, or 43 cents per diluted share, in the year-previous period, the company reported.
Revenue was $153.6 versus $150.8 million in the year-prior quarter. Operating profit was $14.4 million versus $9.4 million in the period a year earlier.
As to performance, lower average sales price partially offset increased unit volume. In the consumer business, sales increased in the Latin America and Mexico markets and decreased in the U.S. and Canada markets, Hamilton Beach stated. Global commercial market sales decreased as demand normalized versus the third quarter when revenue grew 35.8% due to strong post-pandemic demand in the food service and hospitality industries.
Hamilton Beach added that it expects continued progress with its six strategic initiatives to drive revenue growth, expand margin and generate strong cash flow. The focus of the initiatives is increasing sales of innovative, higher-priced, higher-margin products, particularly in its core North American market.
The company detailed initiative development as:
- Drive Core Growth. Energize Hamilton Beach and Proctor Silex core brands in the prime North American market with new products supported by digital marketing, social media advertising and influencer marketing.
- Gain Share in the Premium Market. Initiatives to develop, license and acquire brands that increase Hamilton Beach’s participation in the premium market with new product releases and digital marketing supporting the strategy to grow business and presence. In March, the company announced an agreement to provide the next generation of specialty appliances for use with Numilk raw ingredients to create a variety of fresh non-dairy milk products for consumers and commercial users.
- Expand in Home Health and Wellness. Introduce new products as it aims to achieve meaningful dollar and share participation in the large and fast-growing home health and wellness market. Hamilton Beach launched a line of premium True HEPA air purifiers under the licensed Clorox brand (pictured above) and created a new category with an electric countertop water filtration model launched under the licensed brand Brita Hub. Then, in the home medical market, the company is working in partnerships that leverage Hamilton Beach’s strengths in brand equity, sourcing, logistics and new product development to create appliances that help consumers manage their health needs.
- Lead in the Global Commercial Market. Securing new business and increasing sales with existing customers in the food service and hospitality industries wherever Hamilton Beach operates. The company plans to do so by developing products that create a competitive advantage in the company’s core blending and mixing categories, as well as expanding into new categories organically.
- Accelerate Digital Transformation. Additional investment in e-commerce, including robust online marketing, to gain share in e-commerce markets for consumer and commercial products in close collaboration with omnichannel and online-only retailers.
