St. Louis-based wastewater, storm drainage and fire protection distributor Core & Main on Dec. 13 announced its 2022 third-quarter earnings, which included roughly $1.8 billion in net sales, a 29.4% increase over the same quarter in 2021.
Core & Main said the increase in net sales was primarily attributable to price inflation, volume growth and acquisitions, with price inflation representing approximately 74% of the net sales increase. The volume increases were driven by market volume growth, “which helped drive growth across all product lines, and share gains from the execution of our sales initiatives,” the company said.
Third-quarter net sales growth for pipes, valves, fittings and storm drainage products benefited from price inflation, end-market growth and acquisitions, Core & Main said.
Gross profit margin for 3Q increased 110 basis points to 27.5%, while net income increased 63.3% to $178 million, the company said.
“Core & Main’s third quarter results reflect our team’s execution and the resilience of our business in a dynamic environment,” said Steve LeClair, CEO of Core & Main. “We delivered our eighth consecutive quarter of double-digit year-over-year net sales growth, with third quarter net sales exceeding our expectations due to healthy end-market demand, robust performance across our growth initiatives and continued price realization. This is an impressive accomplishment considering the 39% net sales growth we achieved in the same period last year. Municipal repair and replacement activity remains strong, and we continue to see an acceleration of non-residential construction activity.”
Core & Main ranks No. 10 on MDM’s 2022 list of Top Industrial Distributors.
The company also announced that it closed on a previously reported acquisition of Lanier Municipal Supply Co. Inc., a distributor of water, wastewater, storm drainage, agricultural and irrigation products based in Lakeland, Georgia.
“Lanier Municipal Supply is a fantastic company that has proudly served the waterworks industry for over four decades,” said Jack Schaller, President of Core & Main. “Their industry knowledge, dedication to their customers and family-like culture have established them as a strong regional waterworks distributor. We are thrilled to start this new chapter with them as part of the Core & Main family.”