Beacon turns in record Q3
Net sales at Beacon, the roofing and building products distributor, climbed 7% to $2.58 billion in the third quarter from sales of $2.42 billion in the third quarter last year.
The latest figure from Beacon marks a new company record for quarterly net sales.
The Herndon, Virginia-based company said the increase was driven by acquired branches and greenfields opened during the last four quarters.
Year to date in 2023, Beacon has expanded its footprint through the completion of 9 acquisitions and the opening of 19 new greenfield locations.
Sales for the first nine months of the fiscal period are up 5.6% to $6.82 billion, also a company record for net sales for the first nine months.
During the third quarter, Beacon’s residential roofing product sales increased 13.6%, non-residential roofing product sales decreased 7.6%, and complementary product sales increased 12.7% compared to the same period a year ago.
Beacon noted that the increase in residential roofing product sales was primarily due to higher volumes.
The company also posted a net income of $161.3 million for the quarter, which is a 4.2% increase from a net income of $154.8 million in the prior third quarter.
The distributor operates over 500 branches throughout all 50 states in the U.S. and 6 provinces in Canada. According to Beacon, the company has more than 100,000 customers.
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The Bottom Line: Acquisitions and new branch openings help push Beacon sales ahead by 7% as profits increased 4.2% to $161.3 million.
What the CEO said: “Beacon’s third quarter results were outstanding, reflecting our team’s high caliber execution on our Ambition 2025 strategic plan and the power of our business model,” said Julian Francis, Beacon president and CEO. “We demonstrated that we have multiple levers of growth and can achieve results in any environment. The vast majority of our market demand is from non-discretionary repair and reroofing and in the third quarter we demonstrated our ability to capitalize on that non-discretionary demand.”
Company Info: For the full third quarter 2023 financial report from Beacon, click here.
