SiteOne Q1 2024 Earnings Report
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.