Resideo’s ADI Global Distribution Sales Fall 4.1% in 1Q - Modern Distribution Management

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Resideo’s ADI Global Distribution Sales Fall 4.1% in 1Q

Ahead of Resideo's major acquisition of Snap One that will signficantly expand ADI, the unit saw 1Q volume declines in several categories.
ADI Global Distribution

Resideo Technologies — a manufacturer and distributor primarily of smart home products — reported its 2024 first quarter financial results on May 2, which showed a modest annual sales decline in its ADI Global Distribution unit.

Resideo posted total 1Q sales of $1.49 billion, down 4% year-over-year, while net profit of $43 million trailed the $57 million of a year earlier. Adjusted EBITDA of $137 million narrowly trailed the $138 million of a year earlier.

At ADI, the unit’s 1Q sales of $866 million fell 3% year-over-year, with eCommerce accounting for 21% of that dollar figure. Resideo noted that ADI’s eCommerce channel grew 1% during 1Q year-over-year.

Resideo added that ADI had volume declines in several categories, including residential security, access control and video, partially offset by expansion in fire and data communications.

ADI’s 1Q gross margin of 18.0% fell 120 basis points year-over-year, while operating profit of $49 million trailed the $64 million of a year earlier. Adjusted EBITDA of $58 million and 6.7% margin trailed the $70 million and 7.9% margin of a year earlier.

A few weeks earlier on April 15, Resideo announced its pending major acquisition of Snap One — a like manufacturer and distributor of audio/video, networking, surveillance, power and structured wiring products for connected homes and businesses. That deal is valued at $1.4 billion, and will be integrated into ADI upon completion.

“We continued to execute on our transformation work through organic and inorganic actions. We took further steps in optimizing our manufacturing footprint and we have improved structural costs through restructuring and focused expense controls,” Resideo President and CEO Jay Geldmacher said in the company’s financial release. “We expect our planned acquisition of Snap One will bring immediate value to Resideo by adding highly complementary business capabilities that expand opportunities in attractive growth categories and accelerate ADI’s expansion of higher margin proprietary products.”

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