SiteOne Landscape Supply Reports 6% Increase in Net Sales to $4.54 Billion for Fiscal Year 2024

SiteOne Landscape Supply, Inc. reported a 6% increase in net sales for the fiscal year ending December 29, 2024, reaching $4.54 billion, compared to $4.30 billion in the previous fiscal year. The growth was primarily driven by acquisitions, which contributed approximately $286 million to net sales. However, organic daily sales decreased by 1%, largely due to commodity price deflation impacting pricing across key product categories. The company's gross profit also rose by 5% to $1.56 billion, but gross margin fell slightly to 34.4% from 34.7% in the prior year, reflecting lower price realization despite higher-margin acquisitions.

In terms of profitability, SiteOne's net income attributable to the company decreased by 29% to $123.6 million, down from $173.4 million in the previous year. This decline was attributed to the adverse effects of commodity product deflation and lower price realization. Selling, general, and administrative expenses increased by 10% to $1.39 billion, driven by higher operating costs associated with acquisitions and impairment charges related to the consolidation of certain branches.

Strategically, SiteOne continued to expand its footprint through acquisitions, completing several transactions in 2024, including Custom Stone and OakStreet Wholesale Nursery, which enhanced its product offerings in hardscapes and nursery goods. The company now operates over 690 branches across 45 U.S. states and six Canadian provinces, with a diverse product portfolio of approximately 170,000 stock keeping units (SKUs). The Partners Program, a loyalty rewards initiative, had around 52,000 enrolled customers, contributing to approximately 60% of net sales.

Operationally, the company faced challenges from a softening residential construction sector and ongoing inflationary pressures. Despite these challenges, SiteOne remains optimistic about the long-term growth potential of the landscape supply industry, driven by favorable demographic trends and sustained interest in outdoor living. The company anticipates that commodity price deflation will moderate in the upcoming fiscal year, with expectations of modest price increases across various product lines.

Looking ahead, SiteOne plans to leverage its acquisition pipeline and operational initiatives to drive growth and enhance market share. The company is focused on improving profitability through enhanced supply chain efficiency and digital initiatives, including upgrades to its e-commerce platform. With a strong balance sheet and liquidity position, SiteOne is well-positioned to navigate the current economic landscape and capitalize on future opportunities.