Facilities maintenance supplies distributor Global Industrial Company reported its 2023 fourth quarter and full-year financial results on Feb. 29, showing that the company’s May acquisition of business products distributor Indoff continues to produce major year-over-year sales gains, while organic growth was also healthy.

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4Q23

Port Washington, NY-based GlC posted total 4Q23 sales of $320 million, up 22.9% year-over-year. Excluding the $69 million acquisition of Indoff, comparable sales were up 5.1%, and up 5.2% on an average daily sales basis. Sequentially, the overall sales growth topped 3Q23’s 18.8%.

The company’s 4Q23 gross profit of $108 million jumped 15.4% year-over-year, while gross margin of 33.8% fell 220 basis points. Excluding Indoff, 4Q23 gross margin was 35.5%. Operating profit of $21 million likewise increased 20.9% year-over-year while margin dipped 10 bps to 6.7%. Excluding Indoff, operating profit was $91 million, down 13.7%. 

GIC’s 4Q23 net profit of $15.3 million topped the $13.8 million of a year earlier.

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Full-Year

For the full-year, GIC’s 2023 sales totaled $1.27 billion, a company record that was up 9.3% vs. 2022. Excluding Indoff, annual sales dipped 0.7% and 0.3% on an average daily sales basis.

GIC’s 2023 gross profit of $436 million increased 3.5% vs. 2022 while gross margin of 34.2% fell 190 bps. Excluding Indoff, 2023 gross margin was 35.5%. The company’s 2023 operating profit and margin of $97 million/7.6% fell from 2022’s $105 million/9.0%. Excluding Indoff, operating profit fell 13.7% vs. 2022.

GIC’s 2023 net profit of $71 million trailed 2022’s $79 million.

“In 2023 we continued to execute against our ACE strategy. Revenue reached a record $1.27 billion, as we benefited from the acquisition of Indoff, while organic revenue performance reflects the soft start to the year,” GIC Chief Executive Barry Litwin said in the company’s 4Q financial release. “As we moved through 2023, the demand environment improved, pricing pressures eased and we delivered solid second half results. In the fourth quarter we posted our best top line growth of the year as organic revenue improved 5.1%. These gains reflect continued volume improvement and strength in our e-commerce channel.”

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