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Dec 31, 2023
SiteOne Q4 2023 Earnings Report
SiteOne finished the year strongly with sales volume growth mostly mitigating commodity price deflation, combined with continued gross margin recovery and tight SG&A management resulting in modest adjusted EBITDA growth.
Key Takeaways
SiteOne's Q4 2023 net sales increased by 8% to $965.0 million, driven by acquisitions, although organic daily sales decreased by 1% due to commodity price deflation. Gross profit rose by 8%, but gross margin decreased slightly. Net loss was $3.4 million, while adjusted EBITDA increased by 3%.
Net sales for the Fourth Quarter 2023 increased to $965.0 million, or 8%, compared to the prior-year period.
Organic Daily Sales decreased 1% compared to the prior-year period.
Gross profit increased 8% to $326.6 million for the Fourth Quarter 2023 compared to the prior-year period.
Adjusted EBITDA increased 3% to $39.9 million for the Fourth Quarter 2023, compared to the prior-year period.
SiteOne
SiteOne
Forward Guidance
SiteOne expects commodity price deflation to moderate in the first half of 2024 with positive contribution from pricing in the second half. Overall, prices are expected to be down 1% to 2% for the full year 2024. Adjusted EBITDA is expected to be in the range of $420 million to $455 million.
Positive Outlook
- Recovering residential market
- Steady maintenance
- Resilient commercial, repair and remodel markets
- Commercial initiatives
- SG&A management
Challenges Ahead
- Commodity price deflation in the first half of 2024
- Overall prices expected to be down 1% to 2% for the full year 2024
- Uncertain economic conditions
- Potential supply chain disruptions
- Increased operating costs