On July 31, 2024, SiteOne Landscape Supply Inc (SITE, Financial) released its 8-K filing announcing its second-quarter earnings for 2024. SiteOne Landscape Supply Inc is a supplier of tools and equipment, serving various businesses including wholesale irrigation, outdoor lighting, nursery, landscape supplies, grass seeds, fertilizers, turf protection products, turf care equipment, and golf course accessories for green industry professionals mainly in the United States and Canada.
Performance and Challenges
SiteOne Landscape Supply Inc (SITE, Financial) reported net sales of $1.41 billion for Q2 2024, a 4% increase compared to $1.35 billion in Q2 2023. However, Organic Daily Sales decreased by 3% due to softer demand and price deflation for commodity products. The company faced challenges with increased SG&A expenses and a slight contraction in gross margin.
Financial Achievements
Despite the challenges, SiteOne Landscape Supply Inc (SITE, Financial) achieved a gross profit increase of 4% to $510.3 million, although the gross margin contracted by 10 basis points to 36.1%. The company also closed four acquisitions during the quarter, contributing $103.2 million to net sales growth.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Net Sales | $1.41 billion | $1.35 billion |
| Gross Profit | $510.3 million | $489.4 million |
| Net Income | $120.2 million | $124.0 million |
| Adjusted EBITDA | $210.5 million | $211.2 million |
Balance Sheet and Cash Flow
SiteOne Landscape Supply Inc (SITE, Financial) reported a decrease in operating cash flow to $147.4 million from $253.8 million in the prior-year period, primarily due to seasonal timing differences in working capital. The company's net debt increased to $523.6 million from $385.4 million as of July 2, 2023.
Commentary and Outlook
"In early June, we communicated that our Organic Daily Sales for the second quarter were trending down 4% to 5% reflecting softer end market demand and continued price deflation. Given that trend, we were pleased to see conditions improve in June and achieve an Organic Daily Sales decline of only 3% for the quarter," said Doug Black, SiteOne’s Chairman and CEO.
Looking ahead, SiteOne Landscape Supply Inc (SITE, Financial) expects market softness and deflation to continue impacting results for the remainder of 2024. The company anticipates a low single-digit decline in Organic Daily Sales but expects overall sales growth to be positive due to acquisitions.
For more detailed insights and to access the full earnings report, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from SiteOne Landscape Supply Inc for further details.
