SiteOne Landscape Supply – 32.8% Sales Growth, $4.301B in 2023

SiteOne, the largest national wholesale distributor of landscape supplies, recently announced its financial performance at the William Blair Growth Stock Conference in June 2024. The company reported a 32.8% growth in net sales from 2016 to 2023, with net sales reaching $4.301 billion in 2023, representing a 35.4% increase from 2022. Adjusted EBITDA also saw substantial growth, reaching $410.7 million in 2023, a 34.9% increase from 2022.

The company's gross margin percentage also experienced positive momentum, increasing by 340 basis points from 2016 to 2023. Additionally, the adjusted EBITDA margin percentage saw a 140 basis point increase during the same period.

In terms of acquisitions, SiteOne's growth strategy has been evident. The company completed several high-performing acquisitions, with acquisitions' contribution to net sales growing by 206% from 2016 to 2023.

Looking at the market position, SiteOne holds a significant share, with its market share estimated at approximately 17% in a highly fragmented $25 billion market. The company's product offering is diverse, including irrigation, lighting, agronomics, nursery, hardscapes, and landscape accessories.

Despite reporting a 1% increase in organic daily sales and a 5% increase in volume in the first quarter of 2024, the company faced challenges in the second quarter, experiencing a 4-5% decrease in organic daily sales and a 1% decrease in volume. There was also a persistent commodity price deflation, resulting in a 4% decrease in price.

To address these market headwinds, SiteOne outlined several actions, including driving organic growth, margin expansion initiatives, reducing SG&A, executing integration and turnaround plans for acquisitions, and improving cash flow through strong inventory management.

As a result of these announcements, the company's shares have moved -8.7% on the market, and are now trading at a price of $138.91. For the full picture, make sure to review SiteOne Landscape Supply's 8-K report.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.