On June 6, St. Louis-based waterworks and industrial supplies distributor Core & Main reported its fiscal 2023 first-quarter earnings, which spanned Feb. 1 through April 30.

The company said fiscal 1Q 2023 net sales decreased 1.5% to $1.57 billion versus 1Q 2022, but increased 49.2% when compared with the first quarter of fiscal 2021.

Gross profit margin increased 160 basis points to 27.9% during 1Q 2023, while net income decreased 2.9% to $133 million.

Core & Main closed three acquisitions during the quarter and signed a “definitive agreement” to acquire another business subsequent to the quarter: Landscape & Construction Supplies, UPSCO, Midwest Pipe Supply and Foster Supply. The company also opened new locations in San Diego, California, and Lincoln, Nebraska.

“First quarter net sales finished in line with our expectations, reflecting a return to more typical seasonality for the first quarter,” said Steve LeClair, CEO of Core & Main. “We had an excellent quarter from a profitability standpoint, with Adjusted EBITDA margin increasing 30 basis points to a new first quarter record of 14.0%. Prices remained elevated against improving supply chains and gross margins outperformed our expectations, offsetting lower sales volume and inflationary cost pressure to deliver a solid Adjusted EBITDA outcome for the quarter.”