Benzinga | Aug 13, 2021 02:19PM EDT

Diversey Holdings Reports Mixed Q2 Results

* Diversey Holdings Ltd (NASDAQ:DSEY) reported second-quarter FY21 sales growth of 3.9% year-on-year but declined 4.4% versus pre-COVID 2019 baseline, to $650.10 million, missing the analyst consensus of $666.13 million.

* Net sales from the Institutional segment rose 0.3% Y/Y, and Food & Beverage increased 15%.

* Gross profit grew 2% Y/Y to $265.6 million, with the margin contracting 70 basis points to 40.9%.

* The operating margin was 3.5%, and operating income for the quarter declined 52.3% to $23 million.

* The company held $70.7 million in cash and equivalents as of June 30, 2021.

* Adjusted EBITDA fell 4.3% Y/Y to $101.3 million, and the adjusted EBITDA margin declined 130 basis points to 15.6%.

* Adjusted EPS of $0.16 beat the analyst consensus of $0.11.

* "We are pleased to report another good quarter, bringing our first-half results in line with our IPO plan despite a difficult operating environment," said CEO Phil Wieland.

* Diversey Holdings targets quarter-on-quarter growth to come in Q4 than initially planned for Q3.

* Price Action: DSEY shares are trading higher by 0.62% at $16.27 on the last check Friday.