It was a surprisingly good year-end for maintenance, repair, and industrial (MRO) distributor Global Industrial Inc.’s sales.
The company says more than 60% of all orders are completed online. Global Industrial posted 2023 sales of $1.27 billion. That’s a 9.3% increase from $1.17 billion in 2022. Net income was $70.7 million, versus $78.8 million in the prior year.
“As we moved through 2023, the demand environment improved, pricing pressures eased and we delivered solid second-half results,” says CEO Barry Litwin. “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 ecommerce channel.”
Global Industrial sales in Q4 2023
In the fourth quarter, Global Industrial recorded sales of $320.1 million. That’s up 22.9% from $260.5 million in Q4 2022. Net income was $15.3 million. That compares with $13.8 million in the fourth quarter of 2022.
“Ecommerce and broader digital sales were once again our leading channel and ended the year representing more than 60% of total annual order volume,” chief financial officer Tex Clark told analysts on the Q4 earnings call, according to a transcript from Seeking Alpha. “Private brand demand remains robust and represented approximately 50% of total sales in 2023.”
In May, Global Industrial acquired Indoff, a value-added business solutions provider and distributor serving businesses across the U.S. and parts of Canada, for $69.2 million.
Indoff’s products and services include:
- Material handling/warehouse solutions
- Commercial interiors
- Business and promotional products
That acquisition was a big reason Global Industrial posted stronger year-end results, Litwin told analysts.
“We expanded our go-to-market channels with the addition of Indoff, made enhancements to the user experience and our e-commerce platform which helped drive web performance and grew the enterprise offering while making investments in sales resources to support both new and existing customers,” he told analysts.
Check back for more earnings reports. For reference, here’s last quarter’s update on Global Industrial sales.
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