MSC Industrial Supply Company reported higher sales and sharply increased earnings in its 2022 fiscal year results announced Thursday.
The Long Island-based metalworking and MRO distributor said its net sales totaled $3.69 billion in the 12-month window ending Sept. 3, a nearly 14% increase from the $3.24 billion sold in the previous fiscal year. Income from operations was up more than 55% over that span, while both net income and diluted earnings per share increased more than 56%. The company’s operating margin for the year climbed from 9.3% to 12.7%.
Company officials said “robust” inflation and resulting price pressures, along with company productivity initiatives, helped bolster its profits for the year. MSC said its "Mission Critical" program is on pace to surpass its goal of $100 million in savings by the end of the current fiscal year.
"In addition to revenue growth, I am encouraged by the profitability of our business in what has been a complex operating environment,” MSC CFO and Executive Vice President Kristen Actis-Grande said in a statement. “We delivered 140 basis points of adjusted operating margin improvement in fiscal 2022, resulting in an adjusted incremental margin of over 23%."
The company closed out its latest fiscal year with more than $1 billion in net sales in its fiscal fourth quarter, a 23% increase compared to the same window last year. Income and diluted earnings per share were up more than 57% in the latest quarter.
Company officials said they expect “strong topline growth” and an increased operating margin in the 2023 fiscal year, and noted that its anticipated cash flow conversion would provide “flexibility” with regard to capital allocation during the year.
“We have a leading position in the marketplace across our core business lines and our ability to execute in any macro environment sets us up to continue delivering strong results in fiscal 2023 and beyond,” added MSC President and CEO Erik Gershwind.
