SiteOne Landscape Supply, Inc. reported a strong performance for the third quarter and the first nine months of fiscal 2024, with net sales reaching $1,208.8 million for the three months ended September 29, 2024, a 6% increase from $1,145.1 million in the same period of the previous year. For the nine months, net sales totaled $3,527.5 million, also reflecting a 6% growth compared to $3,336.2 million in the prior year. This growth was primarily driven by acquisitions, which contributed $77.3 million (7%) to net sales in Q3 and $243.0 million (7%) for the nine-month period.
Gross profit for Q3 2024 was $411.0 million, up from $388.1 million in Q3 2023, while gross profit for the nine months increased to $1,222.5 million from $1,164.6 million. The gross margin for Q3 improved slightly to 34.0%, but decreased to 34.7% for the nine-month period, down 20 basis points from the previous year. Selling, general, and administrative (SG&A) expenses rose by 12% in Q3 and 10% for the nine months, largely due to the costs associated with acquisitions.
Operating income for Q3 2024 was $69.9 million, a decline from $81.2 million in Q3 2023, while for the nine months, operating income decreased to $217.2 million from $252.2 million. Net income for Q3 fell to $44.6 million from $57.3 million in the prior year, and for the nine months, net income decreased to $145.9 million from $176.8 million. Basic net income per share for Q3 was $0.98, down from $1.27, and for the nine months, it was $3.21 compared to $3.92.
The company experienced a decline in organic daily sales, which decreased by 1% in Q3 and 2% for the nine months, attributed to commodity price deflation impacting sales by approximately 3% in both periods. Despite these challenges, the company remains optimistic about long-term growth opportunities in the landscape supply industry, driven by favorable demographic trends and a sustained interest in outdoor living.
Strategically, SiteOne has continued to expand through acquisitions, including a 75% ownership interest in Devil Mountain Wholesale Nursery, LLC, and several other distributors across various states. The company has also maintained a share repurchase program, with $342.0 million remaining under its authorization as of September 29, 2024. The company’s total long-term debt increased to $416.0 million, reflecting ongoing investments in acquisitions and working capital.
About SiteOne Landscape Supply, Inc.
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