Masonite International Corporation announced results for the three and nine months ending October 2, 2022.
The results
Net sales are up 12 percent year over year on strong execution in North American Residential segment. Net income attributable to Masonite is up 51 percent year over year and Adjusted EBITDA is up 7 percent year over year. Masonite is also accelerating its Doors That Do More strategy with a pending acquisition of high-performance door system components manufacturer, Endura Products.
Consolidated net sales were $728 million in the third quarter of 2022, a 12 percent increase from $652 million in the third quarter of 2021. North American Residential net sales were $579 million, a 19 percent increase compared to the third quarter of 2021, driven by a 23 percent increase in AUP, partially offset by a three percent decrease in volume and a combined one percent decrease due to unfavorable foreign exchange and lower component sales.
Total company gross profit was $167 million in the third quarter of 2022, an increase of 8.5 percent compared to $154 million in the third quarter of 2021. Gross profit margin decreased 60 basis points to 23 percent, as higher AUP was more than offset by the impact of inflation on raw materials and logistics costs, higher manufacturing wages and energy costs and lower volume in our Europe and Architectural segments.
What the company is saying
“Our core North American Residential business continued to deliver outstanding results this quarter, allowing Masonite to achieve double digit net sales growth despite significant macroeconomic headwinds in our European segment,” says Howard Heckes, President and CEO. “The pending acquisition of Endura Products, a U.S. manufacturer of innovative door system components, will drive further momentum and fuel our Doors That Do More strategy. As we enter the fourth quarter, our teams remain focused on disciplined execution of our strategy and utilizing our Mvantage operating system to adapt to evolving end markets and deliver another year of revenue and earnings growth.”
