Posted January 9, 2023

MSC's fiscal Q1 sales jump nearly 13% YOY 

MSC Industrial Supply Co., a North American distributor of a broad range of metalworking and maintenance, repair and operations (MRO) products and services, reported financial results for its fiscal 2023 first quarter ended December 3, 2022.

Highlights from the company's fiscal Q1 results include:

  • Net sales of $957.7 million, an increase of 12.9% YoY
  • Average daily sales ("ADS") growth of roughly 9 percentage points above the Industrial Production (IP) Index
  • Operating income of $116.0 million, or $118.3 million adjusted to exclude acquisition-related costs and restructuring and other costs1
  • Operating margin of 12.1%, or 12.3% excluding the adjustments described above1
  • Diluted EPS of $1.45 vs. $1.18 in the prior fiscal year quarter
  • Adjusted diluted EPS of $1.48 vs. $1.25 in the prior fiscal year quarter1
  • Repurchased over 200,000 shares during the quarter at an average purchase price per share of $79.60

"We began the fiscal year on strong footing as average daily sales grew 12.9%, or about 9 percentage points above the Industrial Production Index," said Erik Gershwind, president and CEO. "Top-line performance was driven by the ongoing execution of our five growth drivers – solidify metalworking, leverage our portfolio strength, expand solutions, grow e-commerce, and diversify customers and end-markets. We continue to be a partner of choice for our customers, who have recognized our ability to improve their productivity and be a resource against global supply chain and labor constraints. This value proposition supports our ability to drive price realization, which contributed to our fiscal first quarter results."

Kristen Actis-Grande, executive vice president and CFO, added, "We successfully capitalized on growth by delivering 140 basis points of operating margin expansion, or 100 basis points on an adjusted basis, and significant earnings per share improvement compared to the prior year period. We continue to make progress on our Mission Critical journey, which is leading to productivity gains and allowing us to reaffirm our fiscal 2023 adjusted operating margin guidance range.

"I am encouraged by our first quarter performance, which continued our stretch of strong quarterly execution," she added. "I am also encouraged by the growth trajectory for the Company in the midst of a complex operating environment. Looking ahead, we believe we are well positioned regardless of the macro environment, as our balance sheet strength and five growth drivers remain competitive advantages that allow us to deliver on our Mission Critical targets."

View full quarterly report here.