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Dec 31, 2023
MasterBrand Q4 2023 Earnings Report
MasterBrand reported a solid quarter with net sales at the high-end of internal expectations, achieving its fifth consecutive quarter of year-over-year adjusted EBITDA margin expansion despite market headwinds.
Key Takeaways
MasterBrand reported Q4 2023 net sales of $677.1 million, a 14% decrease year-over-year, but net income increased 134% year-over-year to $36.1 million. The adjusted EBITDA margin increased 20 basis points year-over-year to 12.7%.
Net sales decreased 14% year-over-year to $677.1 million due to lower volumes.
Net income increased 134% year-over-year to $36.1 million due to higher operating income.
Gross profit margin increased 550 basis points to 32.9% due to savings from strategic initiatives.
Adjusted EBITDA margin increased 20 basis points to 12.7%.
MasterBrand
MasterBrand
Forward Guidance
For full year 2024, the Company expects net sales to decline low single-digit percentage to flat, adjusted EBITDA in the range of $370 million to $400 million, with related adjusted EBITDA margins of roughly 14.0 to 14.5 percent and Adjusted EPS in the range of $1.40 to $1.60.
Positive Outlook
- Net sales performance to be in line with the underlying market demand.
- Initiatives designed to gain share to more than offset trade down and continued soft market demand.
- The ability to flex manufacturing, due to the success of the common box initiative.
- Further execution on strategic initiatives.
- Continuous improvement efforts should allow for flat to slightly higher full year adjusted EBITDA margins.
Challenges Ahead
- Net sales year-over-year decline of low single-digit percentage to flat
- Adjusted EBITDA in the range of $370 million to $400 million
- Adjusted EBITDA margins of roughly 14.0 to 14.5 percent
- Adjusted EPS in the range of $1.40 to $1.60
- Continued soft market demand