Graco Q4 2022 Earnings Report
Key Takeaways
Graco Inc. reported a record quarter with net sales increasing by 3 percent and operating earnings increasing by 5 percent. The Industrial and Process segments showed strong growth, while the Contractor segment experienced a decrease in sales.
Net sales for the quarter increased 3 percent, including 6 percentage points of organic sales growth.
The gross profit margin rate declined approximately 2 percentage points due to higher product costs and unfavorable changes in currency translation rates.
Total operating expenses decreased 7 percent due to lower sales and earnings-based expenses and changes in currency translation rates.
Sales increased 5% in the Americas, 1% in EMEA (up 12% at consistent translation rates), and were flat in Asia Pacific (up 10% at consistent translation rates).
Graco
Graco
Graco Revenue by Segment
Forward Guidance
Graco is cautiously optimistic about sales growth in 2023 and initiates a revenue outlook for the year of low single-digit growth on an organic, constant currency basis.
Positive Outlook
- Developing new products
- Expanding distribution
- Seeking adjacent markets
- Pursuing strategic acquisitions
- Core growth strategies
Revenue & Expenses
Visualization of income flow from segment revenue to net income