On Sept. 6, St. Louis-based waterworks and industrial supplies distributor Core & Main reported its fiscal 2023 second-quarter earnings, which spanned three months ending July 30. Net sales for fiscal 2Q 2023 were flat at $1.86 billion, while gross profit margin sustained at 26.9%.
Net income in 2Q decreased 9.9% compared the same quarter last year to $164 million. Adjusted EBITDA decreased 2.5% to $270 million during the quarter.
“Core & Main delivered another quarter of solid results as we maintain our focus on driving operational excellence across the business,” said Steve LeClair, CEO of Core & Main. “Sales of $1.9 billion for the quarter were equal to last years’ record high and up 43% from the second quarter of fiscal 2021. We delivered strong Adjusted EBITDA margins of 14.5% through our disciplined pricing and gross margin execution. Prices have sustained through the first half of the year, in part due to the non-discretionary nature of demand in our industry, coupled with the fact that most of our products are either highly specified or made specific for our sector. Gross margins exceeded our expectations yet again as we execute on our gross margin initiatives and continue to benefit from our prior inventory investments. Our timing of inventory investments and subsequent optimization has positioned us well in very dynamic markets.”
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The 2Q period follows the company’s February-April period, in which sales slid 1.5% YoY and increased 49.2% sequentially.
Core & Main completed two acquisitions during 2Q. In May, the company announced it had entered into a definitive agreement to acquire substantially all of the assets of Foster Supply Inc. and R.P. Foster Inc. — collectively Foster Supply — a full-service provider of precast concrete structures, pipe, drainage materials and related geosynthetics products. In July, the company entered into a definitive agreement to acquire Dangelo Co., a full-service provider of fire protection and waterworks products with three locations in Southern California.
For MDM’s 2023 Top Distributors Lists, Core & Main ranks No. 9 among industrial distributors and No. 1 among industrial PVF.