Hayward Holdings Sees 6.0% Sales Growth in 2024

By Bobby Samwell • Thursday, February 27 10:08 • Permanent Link

Hayward Holdings, Inc. has recently released its 10-K report, providing a detailed look at its financial performance for the fiscal year ended December 31, 2023. The company, founded in 1925 and headquartered in Charlotte, North Carolina, specializes in designing, manufacturing, and marketing a range of pool equipment and associated automation systems across North America, Europe, and internationally. Its product portfolio includes pumps, filters, robotics, cleaners, heaters, water sanitizers, lighting solutions, and more, which are distributed through specialty distributors, retailers, and buying groups.

In the 10-K report, Hayward's net sales for the fiscal year 2024 amounted to $1,051.6 million, marking a 6.0% increase from the previous year's $992.5 million. This growth was driven by a 1.8% increase in volume, a 3.2% increase in net price, a 1.1% contribution from acquisitions, and a negligible impact from currency and other factors.

The company's gross profit for the same period rose to $530.8 million from $477.0 million, indicating an 11.3% increase. The gross profit margin also improved to 50.5% from 48.1%, primarily attributed to operational efficiencies, net price increases, and effective management of manufacturing costs.

Selling, general, and administrative expenses increased to $260.9 million in fiscal year 2024 from $233.6 million in fiscal year 2023, representing an 11.7% rise. This was driven by normalized annual incentive compensation, higher salary costs due to wage inflation, targeted investments in customer care and business analytics teams, and discrete legal expenses.

Hayward's operating income for fiscal year 2024 reached $208.8 million, up from $175.2 million in fiscal year 2023, marking a 19.2% increase. The company also reported a net income of $118.7 million for fiscal year 2024, up by 47.1% from the previous year.

Segment-wise, the North America ("NAM") segment saw its net sales increase by 8.8% to $895.5 million, while the Europe & Rest of World ("E&RW") segment experienced a 7.7% decrease in net sales, amounting to $156.1 million. The NAM segment's gross profit margin improved to 53.0% from 49.9%, while the E&RW segment's gross profit margin decreased to 36.2% from 39.2%.

Today the company's shares have moved 2.7% to a price of $14.78. For more information, read the company's full 10-K submission here.

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