Core & Main Inc. on Wednesday reported essentially flat sales in the first quarter of its new fiscal year, but its profit, earnings and margin numbers increased, and the company maintained its initial forecast for the full year.
The St. Louis-based waterworks and fire protection products distributor — no. 6 on ID’s latest Big 50 — posted $1.91 billion in net sales in the three months ending May 3 after reporting $1.911 million in the same window last year. Core & Main officials said that its recent acquisitions offset lower volume in the latest quarter, and that the company also faced a “strong prior-year comparison” and a “dynamic macroeconomic environment.”
Volumes were lower in its pipes, valves and fittings and storm drainage segments, but increased in its fire protection and smart utility operations.
Core & Main’s other quarterly results, however, were improved year-over-year, including a 2% increase in gross profit, a 3.5% increase in operating income, and a 7.6% increase in net income. Gross margin and adjusted EBITDA margin were up 50 basis points and 10 basis points, respectively.
“Our performance was driven by strong execution across our sales initiatives, including double-digit and high-single-digit growth in our treatment plant solutions and smart utility categories, respectively, reflecting continued customer demand for integrated solutions to support aging water infrastructure,” Core & Main CEO Mark Witkowski said in a statement.
Despite the flat first-quarter sales totals, the company maintained its forecast of 2% to 3% net sales growth for the full year.
