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Jun 30, 2024
SiteOne Q2 2024 Earnings Report
SiteOne's performance reflected market softness and price deflation, with strategic acquisitions and cost control measures partially offsetting these challenges.
Key Takeaways
SiteOne Landscape Supply announced its second quarter 2024 earnings, with net sales increasing to $1.41 billion, a 4% rise compared to the previous year. Despite a 3% decrease in Organic Daily Sales due to soft demand and price deflation, acquisitions contributed significantly to sales growth. The company's adjusted EBITDA was comparable to the prior year, and it expects overall sales growth to be positive in the second half of 2024, albeit with a lower adjusted EBITDA margin.
Net sales increased by 4% to $1.41 billion compared to the prior-year period.
Organic Daily Sales decreased by 3% due to soft demand and price deflation.
Gross profit increased by 4% to $510.3 million, while gross margin contracted slightly.
Adjusted EBITDA decreased marginally to $210.5 million, with a 70 basis points decrease in adjusted EBITDA margin.
SiteOne
SiteOne
Forward Guidance
SiteOne anticipates continued market softness and deflation impacting results for the remainder of 2024 but expects to outperform the market with a low single-digit Organic Daily Sales decline. Overall sales growth is expected to be positive due to acquisitions, but with a lower adjusted EBITDA margin than the previous year. The company projects an Adjusted EBITDA in the range of $380 million to $400 million for fiscal year 2024.
Positive Outlook
- Maintenance and new construction markets remain resilient.
- Teams are executing commercial and operational initiatives well.
- Expect to continue outperforming the market.
- Overall sales growth to be positive in the second half of 2024 with the benefit of acquisitions.
- Clear leadership position in wholesale landscape distribution.
Challenges Ahead
- Continuing to experience soft demand driven primarily by a weaker repair and remodel end market.
- Pricing continues to have a negative impact on growth due to the ongoing deflation in commodities.
- Expect those trends to continue throughout the second half of 2024.
- Expect a low single digit Organic Daily Sales decline for the remainder of the year.
- Expect a lower adjusted EBITDA margin than last year.