Middleby Corporation Reports 4% Decrease in Net Sales for Fiscal Year 2024

MIDDLEBY Corporation reported a decrease in net sales for the fiscal year ending December 28, 2024, totaling $3.88 billion, down 4% from $4.04 billion in the previous year. The decline was attributed to a 4.1% drop in the Commercial Foodservice Equipment Group, a 1.4% increase in the Food Processing Equipment Group, and an 8.8% decrease in the Residential Kitchen Equipment Group. The company noted that acquisitions contributed positively to sales, adding approximately $29.7 million, while foreign exchange rates had a minimal impact, increasing sales by $0.5 million.

In terms of profitability, Middleby reported a gross profit of $1.47 billion, resulting in a gross margin of 37.9%, slightly down from 38.0% in 2023. Operating income increased to $656.2 million, representing 16.9% of net sales, compared to 15.7% in the prior year. The company recognized impairment charges of $38.6 million, primarily related to trademarks, which were lower than the $78.1 million recorded in 2023. Net earnings for the year were $428.4 million, or $7.90 per diluted share, up from $400.9 million, or $7.41 per diluted share, in the previous year.

Middleby has pursued an aggressive acquisition strategy, completing eleven acquisitions over the past two years for a total of $224.6 million. Notable acquisitions in 2023 included Flavor Burst, Blue Sparq, and Filtration Automation, while 2024 saw the addition of GBT GmbH Bakery Technology, Maxmac, and others. These acquisitions have bolstered Middleby's portfolio across its three business segments: Commercial Foodservice, Food Processing, and Residential Kitchen Equipment.

Operationally, the company employed 10,616 individuals as of December 28, 2024, with a slight increase in headcount compared to the previous year. The backlog of orders stood at $629.6 million, with expectations to fulfill most of these orders in 2025. The company also reported a significant focus on geographic expansion, particularly in Europe and Latin America, where international sales increased by 19.2% in the Food Processing Equipment Group.

Looking ahead, Middleby announced plans to spin off its Food Processing business into a separate publicly traded entity by early 2026, pending regulatory approvals. This strategic move aims to enhance shareholder value and streamline operations. The company remains cautious about economic conditions, inflation, and supply chain challenges but is committed to maintaining its growth trajectory through innovation and strategic acquisitions.