Infrastructure and industrial supplies distributor Core & Main reported financial results for its 2024 first quarter that ended April 28, showing strong gains in year-over-year and sequential sales, largely driven by recent acquisitions.
The St. Louis-based company posted total 1Q sales of $1.74 billion, up 10.6 year-over-year — which far outpaced 4Q23’s 4.8% growth. The company noted that the YoY increase was primarily due to acquisitions and slight improvements in end markets.
- Net sales for fire protection products declined on lower selling prices, partially offset by acquisitions
- Net sales of meter products benefited from higher volumes, increased product availability, acquisitions and higher pricing
Core & Main’s 1Q gross profit increased 6.6% year-over-year, with gross margin of 26.9% down 130 basis points YoY but up 20 points from 4Q23. Operating profit of $168 million trailed the $181 million of a year earlier but topped 4Q23’s $116 million, while net profit of $101 million fell 24.1% year-over-year but topped 4Q23’s $76 million.
The company’s 1Q adjusted EBITDA of $217 million fell 1.4% year-over-year, but topped 4Q23’s $160 million.
Core & Main closed on five acquisitions during and after 1Q: Eastern Supply, Dana Kepner, ACF West, EGW Utilities and Geothermal Supply Company.
Looking forward, Core & Main narrowed its full-year 2024 sales and adjusted EBITDA outlook to reflect recent acquisitions and the company’s 1Q performance. It now expects full-year sales to range from $7.5 billion to $7.6 billion, with adjusted EBITDA of $935 million to $975 million.
“End market demand has been solid and we expect this to continue through the end of the year,” Core & Main Chairman and CEO Steve LeClair said in the company’s financial release. “We expect sales volume to more than offset slight price deflation in fiscal 2024, yielding low single-digit average daily sales growth excluding acquisitions. We expect the M&A we completed through today will contribute 7% to 8% of our net sales growth in fiscal 2024.”
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