Steelcase Inc. (SCS), a global leader in office furniture and interior solutions, reported a flat organic revenue growth in Q1 2024 despite the acquisitions and pricing actions undertaken by the company. According to its latest SEC report, the company’s revenue for Q1 2024 reached $751.9 million, marking a modest 2% increase compared to the previous year’s $740.7 million.
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In the Americas segment,
which includes the brands Steelcase, AMQ, Coalesse, Designtex, HALCON, Orangebox, Smith System, and Viccarbe, the revenue increased by 5%, while the International segment, which covers Europe, the Middle East, Asia Pacific and Africa, saw a decline in revenue of 9%. Organic revenue was flat, with a 2% growth in the Americas region, offset by a 7% decline in International.
The company’s cost of sales reduced to 68.6% in Q1 2024 compared to 74% in the previous year. This decrease is primarily attributed to higher pricing benefits, totaling around $80 million, which helped counterbalance the impact of lower sales volume and unfavorable currency translation effects of $4.6 million. The company’s gross profit also increased from $191.6 million in Q1 2023 to $234.6 million in Q1 2024, owing to improved operational performance and higher pricing benefits.
During the same period, Steelcase recognized a net income of $1.5 million and earnings per share of $0.01, as opposed to a net loss of $11.4 million and loss per share of $0.10 in Q1 2023. In terms of adjusted operating income, the company reported $19.7 million in Q1 2024, compared to a loss of $4.6 million in Q1 2023. However, adjusted earnings per share fell from $0.05 in Q1 2023 to $0.09 in Q1 2024.
The end of Q1 2024 also saw Steelcase implementing a series of restructuring actions
in response to inflationary pressures, declining order volume, and a decrease in plant utilization. The company announced involuntary terminations for around 40 to 50 salaried roles in Europe, Middle East, and Africa (EMEA), elimination of 240 positions in the Asia Pacific, as well as 30 terminations in the Americas due to the closing of a regional distribution center in Atlanta, Georgia. Restructuring costs associated with these actions are projected to be around $14-17 million for the International segment and approximately $2 million for the Americas segment.
Steelcase Inc. proactively responded to the increasing inflationary pressures and challenges posed by the pandemic through acquisitions, price adjustments, and restructuring measures. Despite the current volatility in global economic conditions, the company appears to be moving towards long-term financial stability and growth. However, with flat organic revenue growth and ongoing restructuring moves, it remains to be seen how Steelcase will maintain its market position in the future.
Income Statement
Financials in millions USD. Fiscal year is March – February. source
| Year | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 – 1994 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 0 | Revenue | 3232.6 | 2772.7 | 2596.2 | 3723.7 | 3443.2 | 3055.5 | 3032.4 | 3060 | 3059.7 | 2988.9 | Upgrade |
| 1 | Revenue Growth (YoY) | 16.59% | 6.80% | -30.28% | 8.15% | 12.69% | 0.76% | -0.90% | 0.01% | 2.37% | 4.19% | Upgrade |
| 2 | Cost of Revenue | 2313.2 | 2011.2 | 1833.4 | 2508.5 | 2355.3 | 2050.3 | 2024.8 | 2088.8 | 2143.7 | 2043.7 | Upgrade |
| 3 | Gross Profit | 919.4 | 761.5 | 762.8 | 1215.2 | 1087.9 | 1005.2 | 1007.6 | 971.2 | 916 | 945.2 | Upgrade |
| 4 | Selling, General & Admin | 837.2 | 741.4 | 684.2 | 958.2 | 904.3 | 850 | 810.5 | 790 | 768 | 757 | Upgrade |
| 5 | Other Operating Expenses | 16.7 | 0 | 35.6 | 0 | 0 | 0 | 0.9 | 6.6 | 3.1 | 22.3 | Upgrade |
| 6 | Operating Expenses | 853.9 | 741.4 | 719.8 | 958.2 | 904.3 | 850 | 811.4 | 796.6 | 771.1 | 779.3 | Upgrade |
| 7 | Operating Income | 65.5 | 20.1 | 43 | 257 | 183.6 | 155.2 | 196.2 | 174.6 | 144.9 | 165.9 | Upgrade |
| 8 | Interest Expense / Income | 28.4 | 25.7 | 27.1 | 27.3 | 37.5 | 17.5 | 17.2 | 17.6 | 17.7 | 17.8 | Upgrade |
| 9 | Other Expense / Income | -14.5 | -7.2 | -10 | -15.5 | -17.8 | -23.8 | -17.3 | -17.8 | -9.8 | 0.9 | Upgrade |
| 10 | Pretax Income | 51.6 | 1.6 | 25.9 | 245.2 | 163.9 | 161.5 | 196.3 | 174.8 | 137 | 147.2 | Upgrade |
| 11 | Income Tax | 16.3 | -2.4 | -0.2 | 45.5 | 37.9 | 80.8 | 71.7 | 4.5 | 50.9 | 59.5 | Upgrade |
| 12 | Net Income | 35.3 | 4 | 26.1 | 199.7 | 126 | 80.7 | 124.6 | 170.3 | 86.1 | 87.7 | Upgrade |
| 13 | Net Income Growth | 782.50% | -84.67% | -86.93% | 58.49% | 56.13% | -35.23% | -26.83% | 97.79% | -1.82% | 126.03% | Upgrade |
| 14 | Shares Outstanding (Basic) | 113 | 112 | 115 | 117 | 117 | 116 | 117 | 122 | 121 | 124 | Upgrade |
| 15 | Shares Change | 0.79% | -2.45% | -1.96% | 0.36% | 0.55% | -1.01% | -4.12% | 0.74% | -2.07% | -0.90% | Upgrade |
| 16 | EPS (Basic) | 0.30 | 0.03 | 0.22 | 1.67 | 1.06 | 0.68 | 1.03 | 1.37 | 0.69 | 0.70 | Upgrade |
| 17 | EPS (Diluted) | 0.30 | 0.03 | 0.22 | 1.66 | 1.05 | 0.68 | 1.03 | 1.36 | 0.68 | 0.69 | Upgrade |
| 18 | EPS Growth | 900.00% | -86.36% | -86.75% | 58.10% | 54.41% | -33.98% | -24.26% | 100.00% | -1.45% | 130.00% | Upgrade |
| 19 | Free Cash Flow Per Share | 0.36 | -1.30 | 0.27 | 2.47 | 0.60 | 1.27 | 0.95 | 0.76 | 0.05 | 0.82 | Upgrade |
| 20 | Dividend Per Share | 0.490 | 0.535 | 0.370 | 0.580 | 0.540 | 0.508 | 0.480 | 0.449 | 0.430 | 0.400 | Upgrade |
| 21 | Dividend Growth | -8.41% | 44.59% | -36.21% | 7.41% | 6.30% | 5.83% | 6.90% | 4.42% | 7.50% | 11.11% | Upgrade |
| 22 | Gross Margin | 28.44% | 27.46% | 29.38% | 32.63% | 31.60% | 32.90% | 33.23% | 31.74% | 29.94% | 31.62% | Upgrade |
| 23 | Operating Margin | 2.03% | 0.72% | 1.66% | 6.90% | 5.33% | 5.08% | 6.47% | 5.71% | 4.74% | 5.55% | Upgrade |
| 24 | Profit Margin | 1.09% | 0.14% | 1.01% | 5.36% | 3.66% | 2.64% | 4.11% | 5.57% | 2.81% | 2.93% | Upgrade |
| 25 | Free Cash Flow Margin | 1.24% | -5.25% | 1.19% | 7.77% | 2.04% | 4.81% | 3.68% | 3.04% | 0.21% | 3.40% | Upgrade |
| 26 | Effective Tax Rate | 31.59% | -150.00% | -0.77% | 18.56% | 23.12% | 50.03% | 36.53% | 2.57% | 37.15% | 40.42% | Upgrade |
| 27 | EBITDA | 170 | 110.5 | 138.2 | 358.1 | 283 | 244.9 | 273.8 | 258.1 | 214.6 | 225 | Upgrade |
| 28 | EBITDA Margin | 5.26% | 3.99% | 5.32% | 9.62% | 8.22% | 8.02% | 9.03% | 8.43% | 7.01% | 7.53% | Upgrade |
| 29 | Depreciation & Amortization | 90 | 83.2 | 85.2 | 85.6 | 81.6 | 65.9 | 60.3 | 65.7 | 59.9 | 60 | Upgrade |
| 30 | EBIT | 80 | 27.3 | 53 | 272.5 | 201.4 | 179 | 213.5 | 192.4 | 154.7 | 165 | Upgrade |
| 31 | EBIT Margin | 2.47% | 0.98% | 2.04% | 7.32% | 5.85% | 5.86% | 7.04% | 6.29% | 5.06% | 5.52% | Upgrade |
Note that we may hold securities mentioned in this article. All data is based on recent SEC filings. Even though we have implemented various manual and automatic fact-checking and data acquisition processes, some incorrect information may have slipped through (false positive). Let us know if you find any inconsistencies!