Free Cash Flow Declines Reason for Concern?Adjusted Free Cash Flow of $41 million for the three months ended December 31, 2022, was 78% or $141 million lower than the same quarter of 2021. Adjusted Free Cash Flow per share (a non-IFRS measure) decreased in the fourth quarter to $0.16 from $0.80 in 2021 and increased on a full-year basis to $1.95 from $1.77 in 2021.
In 2023, management expects Adjusted Free Cash Flow to be in the range of $1.70 to $1.90 per share (decline or flat).
My question then is Q4 normally such a low cash flow quarter for NPI? Seems like a lot of one off expenses were paid for, which contributed to the decline. However the decline overall is concerning.
Overall sales, adjusted EBITDA and net income all increased however, which are positives.
I guess the market will tell us which of these metrics matters most tomorrow.