Fortune Brands Innovations, Inc. reported its financial results for the thirty-nine weeks ended September 28, 2024, showing a modest increase in net sales and significant growth in operating income compared to the previous fiscal period. Net sales reached $3,504.8 million, a 1.2% increase from $3,464.9 million for the same period in 2023. However, net sales for the thirteen weeks ended September 28, 2024, decreased by 8.4% to $1,155.3 million from $1,261.2 million in the prior year.

Operating income for the thirty-nine weeks rose to $559.6 million, reflecting a 16.3% increase from $481.0 million in the previous year. The increase was driven by a decrease in the cost of products sold by $102.0 million, or 5.0%, attributed to raw material cost deflation and productivity improvements. In contrast, selling, general, and administrative expenses increased by $66.9 million, or 7.8%, primarily due to acquisitions and higher marketing costs.

Income from continuing operations, net of tax, was $366.8 million for the thirty-nine weeks, up from $324.2 million in the prior year. Basic earnings per share for continuing operations increased to $2.93 from $2.55. The effective income tax rate for the period was 22.3%, slightly higher than the previous year's rate of 21.7%.

The company undertook significant strategic developments, including the acquisition of Wise Water Solutions LLC (SpringWell) for $105.6 million in February 2024, and the acquisition of Emtek and Schaub, along with Yale and August businesses, for approximately $813.9 million in June 2023. These acquisitions contributed to revenue growth in the Water and Security segments, with the Security segment experiencing a remarkable 128.8% increase in operating income.

Total assets as of September 28, 2024, were $6,598.4 million, a slight increase from $6,565.0 million at the end of 2023. Total current liabilities rose significantly to $1,532.2 million from $1,200.4 million, while long-term debt decreased to $2,277.8 million from $2,670.1 million.

The company also reported restructuring charges of $14.1 million for the thirty-nine weeks, down from $28.9 million in the previous year, primarily related to product-line rationalization and facility closures. Cash provided by operating activities decreased significantly to $395.5 million from $835.6 million, largely due to increased inventory balances.

Overall, Fortune Brands Innovations, Inc. demonstrated resilience in its financial performance amid challenging market conditions, supported by strategic acquisitions and operational efficiencies.