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Mar 31, 2024
SiteOne Q1 2024 Earnings Report
SiteOne experienced continued significant commodity pricing deflation, achieved positive Organic Daily Sales growth, good Net sales growth, and improved operating cash flow.
Key Takeaways
SiteOne Landscape Supply reported an increase in net sales to $904.8 million, driven by organic daily sales growth and contributions from acquisitions. However, the company experienced a net loss of $19.3 million due to lower gross margin and higher SG&A expenses, impacted by commodity price deflation.
Net sales increased to $904.8 million, an 8% increase compared to the prior-year period.
Organic Daily Sales increased 1% despite commodity price deflation.
Gross profit increased 5% to $301.2 million, while gross margin decreased to 33.3%.
Net loss was $19.3 million, compared to a net loss of $4.5 million in the prior year.
SiteOne
SiteOne
Forward Guidance
SiteOne expects commodity price deflation to persist into the third quarter, with full-year prices down approximately 2%. The company anticipates low single-digit Organic Daily Sales growth for the full year 2024 and expects to increase adjusted EBITDA margin during the year. Adjusted EBITDA is expected to be in the range of $420 million to $455 million.
Positive Outlook
- Sales volume is expected to more than offset price deflation.
- Low single digit Organic Daily Sales growth is expected for the full year 2024.
- Expect to increase adjusted EBITDA margin during the year.
- Adjusted EBITDA is expected to be in the range of $420 million to $455 million.
- Benefit of commercial initiatives
Challenges Ahead
- Commodity price deflation is expected to persist into the third quarter.
- Full year 2024 prices are expected to be down approximately 2%.
- Acquisition contributions are not included.
- Higher SG&A expense.
- Lower gross margin.