Earnings

MSC Fiscal 1Q Sales Rise 12.9%

The distributor posted operating income of $116 million as it had yet another month with double-digit year-over-year quarterly sales growth.

January 5, 2023

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Metalworking and MRO supplies distributor MSC Industrial Supply reported fiscal 2023 1Q net sales of $957.7 million, an increase of 12.9% over the same period the year before.

It was another month of double-digit year-over-year sales growth for MSC, which reported annual sales growth of 23% in its final quarter of fiscal 2022 4Q.

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For 2023 1Q, which spanned Sept. 4 to Dec. 3, MSC reported average daily sales growth of roughly 9 percentage points above the Industrial Production Index. The company also reported operating income of $116 million, or $118.3 million adjusted to exclude acquisition-related costs and restructuring and other costs. MSC had an operating margin of 12.1%, or 12.3% excluding the adjustments, ahead of the 10.7% reported in FY 2022 1Q, the company said.

MSC’s 1Q operating profit of $116 million jumped 27.9% and net profit of $81 million increased 23.1%.

“We began the fiscal year on strong footing as average daily sales grew 12.9%, or about 9 percentage points above the Industrial Production Index,” said Erik Gershwind, President and CEO. “Top-line performance was driven by the ongoing execution of our five growth drivers – solidify metalworking, leverage our portfolio strength, expand solutions, grow eCommerce, and diversify customers and end-markets. We continue to be a partner of choice for our customers, who have recognized our ability to improve their productivity and be a resource against global supply chain and labor constraints. This value proposition supports our ability to drive price realization, which contributed to our fiscal first quarter results.”

MSC’s 1Q eCommerce sales reached 61.9% of total company sales during the quarter, the company said.

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