MSC Industrial Supply Co. (NYSE: MSM), distributor of metalworking and maintenance, repair and operations products and services, announced its second quarter and fiscal first half financial results for 2023.
In the second quarter, sales were $961.6 million, an increase of 11.5% compared with the prior-year period. MSC saw average daily sales growth of approximately 11 percentage points above the industrial production index.
Profit for the quarter was $79.1 million, up 12.8% from the prior-year period.
2023 fiscal first-half sales were $1.92 billion, a 12.2% increase from 2022. Profit for the fiscal first half was $160.5 million, an 18% increase from the prior-year period.
MSC reported an update on its Mission Critical growth initiatives.
- Over 150 metalworking and specialty sales experts driving customer productivity
- Technical expertise fueled new customer wins in high-growth end-markets such as aerospace and medical.
Leverage Portfolio Strength
- Class C consumable product category sales grew in the low teens year over year in the second quarter.
Expand Solutions (Vending, In-Plant and Vendor Managed Inventory)
- Vending signings have been strong; vending machine sales grew mid-teens and represent 15% of total company sales.
- In-plant signings are strong; in-plant sales grew nearly 20% and represent over 12% of total company net sales.
- Total solutions net sales represent over 56% of total company sales.
- eCommerce sales grew in the low teens year over year in the second quarter and reached 62% of total company sales.
Diversify Customers and End-Markets
- Public Sector, driven by federal and state government contract wins, grew 20% yearly in the second quarter.