Advantage Solutions today reported that adjusted earnings before income taxes, depreciation and amortization (EBITDA) rose 1 percent for its 2024 fiscal year, fueled by continued progress on its transformation and strong performance across its Experiential Services and Retailer Services segments. Revenues for the year were flat.
In a year of investment, Advantage “made solid progress on our multiyear transformation, making strides to improve our operating efficiency while strengthening our business,” said Advantage CEO Dave Peacock, in a morning call with Wall Street analysts and investors. “These efforts have endured during a difficult macroenvironment, and we continue to position ourselves for long-term, profitable growth.”
Peacock called 2024 “a year of simplification and the beginning of our transformation in earnest,” noting Advantage completed several divestitures to sharpen its focus on the core services and solutions it provides to retailers and consumer goods companies. The company also re-segmented its business into three core business units and “laid the groundwork for significant” advancements in information technology and data.
Fourth-quarter results
For its fourth quarter, which ended Dec. 31, Advantage reported revenues of $892.3 million, down 2.4% from the same period a year ago, excluding the impact related to the fourth-quarter 2023 deconsolidation of its European joint venture, as the company and its consumer goods and retailer clients endured a difficult retail environment.
Advantage posted a net loss of $177.9 million, compared with a net loss of $2.7 million in the same period a year prior, largely due to a one-time goodwill impairment charge.
But the company reported that fourth-quarter adjusted EBITDA jumped 8.9% to $94.6 million, growth that executives attributed to more cost discipline and efficiency across the business.
Advantage also said it made voluntary debt repurchases of $158 million for the year as part of its long-term strategy of reducing its net debt to adjusted EBITDA ratio to less than 3.5 times.
2025 outlook
“We believe we are in a better position today to navigate market uncertainties as we execute on key initiatives designed to increase our operating efficiencies and capabilities, bringing greater speed, precision and insight to our clients, while positioning the company to accelerate growth in the coming years,” Peacock said. “In 2025, we remain focused on these initiatives, and we are confident they are enabling our position as the cost-leading provider of choice.”
Company executives said they expect Advantage to grow revenues and adjusted EBITDA in 2025.
Leadership change
The company also announced today that it has appointed Dean General as the new Chief Operating Officer of its Branded Services business unit, effective March 24.
General, a seasoned retail executive with more than 30 years of experience at consumer goods companies, most recently as general manager of retailer brands and senior vice president of commercial development at Henkel Corporation, will join the company’s executive leadership team. He will replace Jack Pestello, who elected to leave Advantage effective May 1 to pursue new leadership opportunities in retail.
Peacock said Pestello “has been a trusted partner in streamlining operations across our Branded Services segment amidst an increasingly competitive backdrop, and we wish him the best in his future endeavors.”
General will lead Advantage’s efforts to leverage its expansive retail connectivity, leading technology and network scale to bring value-added services to clients, helping them enhance productivity, unlock cash and fuel growth.
“We’re excited to welcome Dean to the team,” Peacock said. “With Dean’s deep experience in retail and extraordinary track record driving organizational transformation and helping companies improve capabilities, teams and client relationships, I’m confident he will build on our strong foundation and bring new momentum for our Branded Services business.”
