MRO supplies distributor Grainger achieved an all-time high in company sales in 2024 as the company continued to outperform industry averages amid relatively soft demand.
2024 Highlights
- Grainger posted total 2024 sales of $17.2 billion, up 4.2% vs. 2023, with daily, organic sales up 4.7%
- Gross margin of 39.4% was identical to 2023, while operating margin of 15.4% ticked down 20 basis points
- Operating profit of $2.64 billion improved 2.8%, while net profit of $1.91 billion increased 4.4%
“Amidst a stable, yet muted demand environment throughout 2024, our team delivered strong performance by staying focused on what matters and delivering an outstanding customer experience,” Grainger Chairman and CEO D.G. Macpherson said in the company’s 4Q financial release on Jan. 31.
In the Store: MDM’s U.S. MRO Market Trends Report
4Q Highlights
- Sales of $4.23 billion increased 5.9% year-over-year, with daily, organic sales up 4.7%
- Gross margin of 39.6% increased 50 bps year-over-year and improved 40 bps from 3Q24, while operating margin of 15.0% jumped 110 bps year-over-year (40 bps adjusted)
- Operating profit of $633 million jumped 13.6% year-over-year (8.6% adjusted), while net profit of $475 million likewise jumped 20.3% (13.9% adjusted)
- High-touch N.A. sales of $3.34 billion (79% of total) increased 4.0% year-over-year, with daily, organic sales up 3.0%
- Gross margin of 42.3% increased 90 bps year-over-year, while operating margin of 17.0% increased 60 bps
- Endless Assortment sales of $816 million increased 15.1% year-over-year, with daily sales up 13.2%
- Gross margin of 29.5% dipped 10 bps year-over-year, while operating margin of 8.6% improved 80 bps. Zoro’s operating margin increased 140 bps, while MonontaRO’s increased 90 bps
MDM’s 4Q24 MarketPulse Report (store link)
Other 4Q Notes
In late December, local news reports shared that Grainger had purchased an 849,691-square-foot facility in Minooka, IL — adjacent to the company’s 1-million-square-foot distribution center there. Grainger reportedly paid $78 million for the facility that will likely need considerable improvements, equipment and other installations before its projected opening by the end of 2026.
On Oct. 1, Grainger broke ground on its 1.2-million-square-foot Houston Distribution Center in Texas’ Harris County. The company expected to open the facility in 2027 with about 400 employees there within a year.
On Jan. 9, former longtime Grainger CEO and Senior Chairman David Grainger died at the age of 97. Having joined the company in 1952, he helped transform Grainger into a market leader in the MRO space, serving as Chairman and CEO from 1968 to 1997.
2025 Outlook
In issuing its 2025 company guidance, Grainger expects the following:
- Net sales: $17.6-18.1 billion, representing annual growth of 2.7-5.2%, with daily, constant currency sales growth of 4.0-6.5%
- Gross margin: 39.1%-39.4%
- Operating margin: 15.1%-15.5%
Grainger frequently appeared on MDM's 2024 Top Distributors Lists, led by its No. 1 ranking in Industrial Supplies, MRO and Safety.
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