Fasteners and other hardware products distributor Hillman Solutions reported its 2023 fourth quarter and full-year financial results on Feb. 22, showing a modest comparable increase in year-over-year sales that decelerated sequentially.
The Cincinnati-based company — No. 23 on MDM’s 2023 Top Industrial Distributors List — posted total 4Q sales of $348 million, down 0.8% year-over-year, with comparable sales up 3.8% as 4Q 2022 had an additional selling week. That comparable figure was down from 3Q’s 5.4% increase.
The company’s 4Q adjusted gross margin of 48.2% jumped 480 basis points year-over-year, while adjusted EBITDA margin likewise jumped 280 bps to 15.6%.
Hillman took a 4Q net loss of $10 million, compared to a $13.9 million loss a year earlier.
By business segment during 4Q:
- Hardware Solutions sales were down 1% year-over-year, with comparable sales up 4%
- Protective Solutions sales were up 4% year-over-year, with comparable sales up 11%
- Robotics and Digital Solutions sales were up 3% year-over-year, with comparable sales up 11%
- Canada sales were down 14% year-over-year (also comparable)
Full Year
For the full year, Hillman posted 2023 total sales of $1.48 billion, down 0.7% vs. 2022, with comparable sales up 0.4% due to 2022’s additional selling week.
By business segment during 2023:
- Hardware Solutions sales were up 4% vs. 2022, with comparable sales up 5%
- Protective Solutions sales were down 11% vs. 2022, with comparable sales down 2.5% (excludes COVID-related PPE sales
- Robotics and Digital Solutions sales were down 0.1% vs. 2022, with comparable sales up 2%
- Canada sales were down 9% (also comparable)
Hillman’s 2023 adjusted gross margin of 44.2% was up 120 bps vs. 2022, while adjusted EBITDA totaled $219 million, up from 2022’s $210 million. The company took a 2023 net loss of $9.6 million, improved from 2022’s $16 million loss.
“2023 was a remarkable operational year for the Hillman team,” Hilman Chairman, President and CEO Doug Cahill said in the company’s earnings release. “During the year we paid down $160 million of debt and reduced our inventory by $100 million while maintaining fill rates over 94% for our customers – all while moving into our new Kansas City distribution hub. This is some of the best work I have seen a team do in my career and sets us up to be more efficient during 2024 and beyond.”
2024 Outlook
In its 2024 full-year guidance, Hillman said it forecasts total sales of $1.475 billion to $1.555 billion, with adjusted EBITDA of $230 million to $240 million.
2024 is HIllman’s 60th year in business.
Related Posts
-
The company posted 3Q year-over-year sales growth of 5.4%, an impressive rebound from the 3.6%…
-
North American full-year sales reached nearly $8.9 billion for a 4.0% annual gain. See our…
-
However, lower volume driven by deferred activity in the gas utilities sector didn't stop the…