Genuine Parts Company has recently released its 10-K report, revealing a comprehensive view of its operations and financial performance. The company, founded in 1928 and headquartered in Atlanta, Georgia, operates in two segments: Automotive Parts Group and Industrial Parts Group. Genuine Parts distributes automotive replacement parts for a wide range of vehicles and industrial replacement parts and related supplies to various industries across the United States, Canada, Europe, and Australasia.
In 2024, the company conducted business in North America, Europe, and Australasia from more than 10,700 locations. The Automotive business accounted for 63% of total revenues, while the Industrial business accounted for 37%. Genuine Parts' mission is to be the employer, supplier, and investment of choice, while also being a valued corporate citizen in the communities it serves. The company aims to outpace market revenue growth, improve operating margins, maintain a strong balance sheet and cash flows, and allocate capital effectively.
Key performance indicators used to measure results include comparable sales, gross profit and gross margin, selling, administrative and other expenses (SG&A), segment EBITDA and segment EBITDA margin, net income, and EBITDA. Genuine Parts' consolidated net sales in 2024 amounted to $23.5 billion, representing a 1.7% increase year-over-year. The company experienced a 3.8% decrease in net income, totaling $904 million, driven by costs associated with a global restructuring program and higher SG&A costs.
The Automotive segment saw a 3.7% increase in net sales, driven by acquisitions, while the Industrial segment experienced a 1.4% decrease in net sales due to a decrease in comparable sales and an unfavorable impact of currency translation. Gross profit increased by approximately 2.8%, primarily due to an increase in net sales, while SG&A expenses increased by 7.7% from the previous year.
The company recognized a $62 million non-cash charge to write down certain existing inventory associated with a new global rebranding and relaunch of a key tool and equipment offering. Genuine Parts' strategic initiatives include a global realignment of its tools and equipment inventory strategy, targeting a new generation of installers by streamlining product offerings and launching a new global branding initiative in 2025.
The market has reacted to these announcements by moving the company's shares -0.9% to a price of $122.17. Check out the company's full 10-K submission here.
