Global Industrial Company reported its 2023 third quarter financial results on Oct. 31, showing a return to organic growth after two straight quarters of declines, and continued benefits of the distributor’s spring acquisition of office supplies provider Indoff.

Port Washington, New York-based GIC — No. 26 on MDM’s 2023 Top Industrial Distributors List and No. 12 for MRO Distributors — posted 3Q total sales of $355 million, up 18.8% year-over-year. The company’s $69 million acquisition of Indoff drove the vast majority of the increase, as sales increased 3.2% excluding Indoff. Company CEO Barry Litwin said the revenue increase was driven by volume improvement, which more than offset continued price headwinds.

Premium: How Global Industrial Became a Distribution Outperformer (Oct. 30)

In 2Q23, total sales increased 2.3% year-over-year, and declined 5.2% excluding Indoff. That deal was GIC’s first acquisition in eight years.

Global Industrial’s 3Q gross margin fell 290 basis points year-over-year to 32.8%. Excluding Indoff, gross margin of 34.5% was down 120 bps, as GIC noted Indoff’s lower margin profile.

Global Industrial’s 3Q operating profit and margin were $28.2 million and 8.0%, compared to $27.5 million and 9.2% a year earlier. Excluding Indoff, 3Q operating profit of $25.7 million fell 6.5% year-over-year. 2Q’s operating profit was $29 million.

The company had a 3Q net profit of $20.7 million, in line with the $20.2 million of a year earlier and $21.5 million in 2Q23.

“Top-line performance was once again led by our eCommerce channel, as recent investments and actions to drive digital transformation and enhance the online shopping experience are delivering returns,” GIC Chief Executive Barry Litwin said in a news release. “During the quarter, we further normalized our inventory position, generated strong cash flow from operations and fully paid off the outstanding balance on the credit facility.”

GIC added that, as of Sept. 30, the company had a total working capital of $142.9 million, cash and equivalents of $34.3 million and credit facility excess of $109 million.