ST. LOUIS — Core & Main Inc. on Tuesday announced financial results for the fourth quarter and fiscal year ended Jan. 29.
Net sales for fiscal 2022 increased $1.6 billion, or 32.9%, to $6.7 billion compared with $5 billion for fiscal 2021. The increase in net sales was primarily attributable to higher selling prices, volume growth and acquisitions; higher selling prices represented approximately three-fourths of the net sales increase. The volume increases were driven by market volume growth and share gains in part due to preferred access to products during a period of material shortages, which helped drive growth across all product lines, and the execution of our sales initiatives.
Net sales growth for pipes, valves & fittings and storm drainage products benefited from higher selling prices, end-market growth and acquisitions. Net sales growth for fire protection products also benefited from higher selling prices, share gains and end-market growth. Net sales of meter products benefited from higher volumes due to an increasing adoption of smart meter technology by municipalities and an improving supply chain.
Gross profit for fiscal 2022 increased $515 million, or 40.2%, to $1.8 billion compared with $1.3 billion for fiscal 2021. The increase in net sales contributed an additional $422 million of gross profit and the increase in gross profit as a percentage of net sales contributed $93 million. Gross profit as a percentage of net sales for fiscal 2022 was 27.0% compared with 25.6% for fiscal 2021. The overall increase in gross profit as a percentage of net sales was primarily attributable to strategic inventory investments ahead of announced price increases, a favorable pricing environment, the execution of our gross margin initiatives and accretive acquisitions.
Net sales for the three months ended Jan. 29 increased $128 million, or 10.3%, to $1.4 billion compared with $1.2 billion for the three months ended Jan. 30, 2022. The increase in net sales was primarily attributable to higher selling prices and acquisitions, partially offset by a mid single-digit volume decline.
"Fiscal 2022 was an impressive year for Core & Main," said Steve LeClair, chief executive officer of Core & Main. "We achieved a record $6.7 billion of net sales. Our ability to grow the business over the last several years is a testament to the investments we have made, our ability to execute with agility and our associates' relentless focus on our customers."
The company announced a fiscal 2023 outlook of net sales of $6.5 to $6.9 billion, adjusted EBITDA of $785 to $865 million, and adjusted EBITDA margin of 12.2% to 12.6%.
"We are confident that we are well positioned to capitalize on municipal infrastructure tailwinds, particularly as water utilities begin to accelerate repair and replacement work supported by the federal infrastructure bill," LeClair said.
