Beacon ended a strong fiscal 2023 with record fourth quarter and full-year net sales, strong net income, and its highest EBITDA in company history.
“Our 2023 demonstrated that our Ambition 2025 strategy has multiple paths to growth and can deliver results in a variety of conditions,” Julian Francis, Beacon’s CEO and president, said in a news release. “We have reported year-over-year net sales growth for the last 12 quarters highlighting the resiliency of our business model and the necessity of our products.”
Net sales in the fourth quarter increased 16.8% year-over-year to a company-record $2.3 billion. The increase was attributed to organic volume growth, including greenfields over the last four quarters. Additionally, acquired branches contributed more than 4% to the increase in fourth quarter sales. For the full fiscal year, net sales increased 8.2% compared to the prior year to $9.12 billion, also a company record. Beacon said the increase in net sales can be attributed to contributions of acquired branches and greenfields.
In the fourth quarter, residential roofing product sales increased 20.2%, non-residential roofing product sales increased 11.4%, and complementary product sales increased 16.0% compared to the prior-year period. For the full fiscal year, residential roofing product sales increased 10.3%, non-residential roofing product sales decreased 2.7%, and complementary product sales increased 18.6% compared to the 2022 fiscal year.
“We remain focused on those items within our control, including pricing, operating efficiency, and working capital management,” Francis said. “Our ability to generate substantial cash flow allows us to re-invest in our growth. In 2023, we acquired 21 branches and opened 28 greenfield locations in key markets enhancing our customer reach and service. We also enhanced our sales capabilities by adding to our organizational leadership positions and expanding our sales training program.”
Gross margin in the fourth quarter decreased to 25.7% from 26.2% in the fourth quarter of 2022 as higher product costs offset higher average selling prices for our products. For the full fiscal year, gross margin decreased to 25.7% from 26.5% due to higher product costs which offset higher average selling prices.
Beacon reported a net income of $95.1 million in the fourth quarter, an increase from $73.3 million in the prior-year period. Adjusted EBITDA in the quarter increased to $216.7 million from $178.5 million in the prior-year period.
For the full fiscal year, net income slid to $435.0 million from $458.4 million in 2022. Adjusted EBITDA increased to $929.6 million in 2023 from $910.0 million in the prior year.
