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.
Don’t miss any content from Distribution Strategy Group. Join our list.
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.