Sales were up at least 20% year-over-year in all four of the company’s key product categories, though gross margin took a dip.
GMS Inc. — No. 8 on MDM’s 2022 Top Building Materials/Construction Products Distributors list — reported its 2023 first quarter financial results on Sept. 1 for the three months ended July 31, which showed continued significant, albeit slower sales growth than in its previous quarter.
Tucker, Georgia-based GMS posted 1Q sales of $1.36 billion, up 30.5% year-over-year, with organic sales up 24.1%. Those growth rates trailed the 38.2% and 28.9% seen in 4Q 2022 (April-June), but nonetheless illustrate continued major revenue gains for the provider of wallboard, ceilings, steel framing and complementary construction products.
GMS noted the revenue gains were primarily due to inflationary pricing, active residential construction and volume growth in wallboard, ceilings and complementary products, along with an improving commercial landscape and its recent acquisition of AMES Taping Tools.
GMS’ sales performance by product category in 1Q was as follows:
- Wallboard – $522 million, increased 33.7% (31.6% organic growth)
- Ceilings – $167 million, increased 21.2% (17.8% organic)
- Steel Framing – $275 million, increased 40.1% (34.6% organic)
- Complementary Products – $396 million, increased 24.6% (11.2% organic)
GMS’ 1Q gross profit of $435 million increased 29.4% year-over-year, while gross margin of 32.0% fell 20 basis points.
GMS posted a 1Q net profit of $90 million, up 46.2% year-over-year and topping 4Q22’s $77 million.
For its fiscal 2022 ended April 30, GMS had total sales of $4.63 billion (up 40.5% vs. 2021), with organic sales up 30.9%. The company’s 2022 net profit was $273 million.
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Mike Hockett is MDM’s executive editor, having joined the publication in March 2022. He oversees MDM’s editorial content and direction, coordinates with contributing authors, conducts interviews with executives in the wholesale distribution space and serves as the editorial face of MDM at industry events. He has extensively covered the distribution and manufacturing sectors since 2014. Hockett earned a degree in print journalism from the University of Wisconsin-Eau Claire and works from his home in Madison, Wisconsin. He can be contacted at mike@mdm.com.
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