Distributor Beacon Building Products reported its 2022 fourth-quarter and full-year financial results on Feb. 23, showing record sales for both the October-December period and the calendar year.

Beacon — No. 5 on MDM’s 2022 Building Materials Distributors List — reported a company record 4Q total sales of $1.97 billion, up 12.2% year-over-year and up 14.1% on a daily sales basis. Sequentially, that growth considerably trailed 3Q’s year-over-year growth of 28.8%.

The Herndon, Virginia-based company attributed the considerable year-over-year increase to the successful implementation of price increases, as weighted-average selling price increase approximately 17-18%, while estimated volumes decreased approximately 6-7% (-4 to 5% on a per-day basis).

Beacon said 4Q residential roofing sales (49% of business) increased 5.1% year-over-year (6.9% on per-day basis); non-residential roofing sales (29% of business) increased 25.2% (27.1% on per-day basis); and complementary product sales (22% of business) increased 14.0% (15.9% on per-day basis).

The company’s 4Q gross margin of 26.2% dipped 10 basis points year-over-year; operating profit of $126 million increased 18.7%, while net profit of $73 million topped the $68 million of a year earlier. Sequentially, that net profit was less than half of 3Q’s $155 million.

Other 4Q notes:

• During the fourth quarter, Beacon acquired 19 branches and opened 12 greenfield locations.
• 4Q digital sales jumped 26% year-over-year, while the company launched a mobile app.
• The company launched trials of electrical vehicle express vans, forklifts and delivery cranes.
• Beacon ended 2022 with a total company headcount of 7,060, up 7.9% year-over-year and essentially flat compared to 3Q22.

Full-Year

For the full year, Beacon reported total 2022 sales of $8.43 billion, a company record that jumped 23.6% vs. 2021 as weighted-average prices increased approximately 20-21% while estimated volume rose approximately 1-2%.

Beacon said full-year residential roofing sales increased 17.5%; non-residential roofing sales increased 41.6%; and complementary product sales increased 17.3%.

The company’s full-year gross margin fell 20 basis points vs. 2021 to 26.5%, as price-cost improvement was more than offset by a higher non-residential product sales mix.

Beacon’s 2022 operating profit of $703 million jumped 50.3%, while net profit of $458 million likewise spiked 88.6%.

Outlook

Beacon shared that its January 2023 sales per day were up approximately 5.5% year-over-year and that the company is expecting 1Q net sales to be up approximately 5% (3.5% on a per-day basis). The company expects 1Q23 gross margins to be in the 25.5% range.

• For the full year, Beacon expects 2023 net sales growth of 2-4% vs. 2022, including contributions from previously-announced acquisitions.
• Beacon expects gross margin to be impacted from inventory profit roll-off, partially offset by structural gains from margin-enhancing initiatives.
• The company said it expects to remain acquisitive consistent with an enhanced M&A pipeline.
• Beacon expects its continued acceleration in greenfield investment will yield at least 15 new locations in 2023.