ELGIN, Ill. - The Middleby (NASDAQ:MIDD) Corporation (NASDAQ: MIDD), a global leader in the foodservice industry, reported its financial results for the first quarter of 2024, indicating a decline in sales and earnings per share (EPS) that fell short of analyst expectations.
The company's net sales for the quarter were $927 million, an 8.0% decrease compared to the same quarter last year, as well as below the analyst consensus estimate of $979.81 million.
Adjusted EPS for the quarter came in at $1.89, which was $0.18 lower than the analyst estimate of $2.07. The company's organic adjusted EBITDA margin stood at 20.1%, with operating cash flows reaching $141 million. Despite the challenging near-term demand conditions, as noted by CEO Tim FitzGerald, Middleby achieved record cash flows in the quarter and reduced net leverage to 2.4x.
The residential kitchen segment experienced a significant decline with a 22.3% drop in organic net sales growth, which the company attributed to the low order volumes significantly impacting the business. However, Middleby remains optimistic about improved conditions for the second quarter and the rest of the year, expecting strong cash generation throughout.
Middleby's commitment to innovation in the commercial foodservice industry is underscored by its recent product launches and the eight Middleby products receiving the prestigious Kitchen Innovations Award. These new products are aimed at addressing foodservice trends and operator challenges.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.