HB Fuller Co (NYSE:FUL) stock rose 0.30% (As on Mar 24, 11:20:29 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the first quarter of FY 22. Organic revenue increased 20.8% versus last year with 6.1% from volume growth and 14.7% from pricing. All three GBUs delivered mid-teens percentage or higher organic revenue growth compared with the prior year. Adjusted gross profit of $214 million increased 10% versus the same period last year. Adjusted gross profit margin declined year over year as higher sales volume and pricing gains were offset by elevated raw material and freight costs. Russia and Ukraine make up less than one percent of the annual revenue, however, these events have dramatically increased the level of supply chain uncertainty and accelerated inflationary pressures in an already fragile environment. FUL have increased the outlook for fiscal 2022 to reflect the contributions from the recent acquisitions of Apollo and Fourny and the strong performance in the first quarter. At the end of the first quarter of fiscal 2022, the company had cash on hand of $63 million and total debt equal to $1,914 million. This compares to cash and debt levels of $81 million and $1,758 million, respectively, in the same period last year. As expected, cash flow from operations declined compared with the prior year driven by working capital due to increased sales, significantly higher raw material costs and extended lead times. Capital expenditures of $49 million increased year over year primarily due to timing of projects.

FUL in the first quarter of FY 22 has reported the adjusted earnings per share of 80 cents, beating the analysts’ estimates for the adjusted earnings per share of 73 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 18 percent to $856.5 million in the first quarter of FY 22, beating the analysts’ estimates for revenue of $817 million.

For fiscal 2022, the raw material and delivery costs are expected to continue to rise as the year progresses primarily driven by increasing industrial demand and supply constraints of U.S. petrochemicals. The company is now anticipating an increase of approximately 12% to 15% in the cost of raw materials in the first half of 2022 versus the fourth quarter 2021 exit rate. H. B. Fuller expects full-year earnings to be in the range of $4.10 to $4.35 per share.