Beacon reaches record Q1 sales

Beacon, the roofing and building products distributor, reported first quarter sales moved ahead 2.7% to $1.73 billion.

The Herndon, Virginia-based company said this was a new company record for first quarter sales compared to first quarter 2022 sales of $1.69 billion.

A lift in sales was driven by higher prices and the contributions of acquired and newly opened branches over the last four quarters, the company said.

Residential roofing product sales increased 0.4%, non-residential roofing product sales decreased 7.8%, and complementary product sales increased 22.7% compared to the prior year. 

The increase in complementary product sales was largely due to the November 2022 acquisition of Coastal Construction Products, according to Beacon.

Beacon’s net income for the first quarter was $24.8 million compared to $55.8 million in same period a year ago, however. 

The distributor noted that its first quarter results compared to the prior year period were impacted by higher operating expenses, which increased 9.5% to $381.3 million.

The company operates over 490 branches throughout all 50 U.S. states and 6 provinces in Canada.
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The Bottom Line: Beacon hits record first quarter sales but profits fall 55% to $24.8 million for the period.

What the CEO said: “Record first quarter net sales demonstrated the strength of our business model and the multiple levers of growth we laid out at our Investor Day last year,” said Julian Francis, Beacon president and CEO. “Our growth and customer experience initiatives helped drive the 13th straight quarter of year-over-year sales improvement. We made strategic investments, both organic and inorganic, expanding our branch footprint and customer reach. 

Company Info: Read Beacon’s full first quarter 2023 financial report here.