Masonite International Corp. announced results for the three and six months ended July 2, 2023.
Key highlights
- Net sales declined 3% year over year due to continued softness in end-market demand.
- Continued execution of the company's 2023 playbook initiatives yielding margin improvement.
- Delivered year to date operating cash flow of $218 million.
Consolidated net sales were $742 million in the second quarter of 2023, a 3% decrease resulting from a 15% decrease in volume and a combined 2% decrease from unfavorable foreign exchange and lower component sales, partially offset by an 8% increase from the Endura acquisition and a 6% increase in average unit price (AUP).
- North American Residential net sales were $585 million, a 4% decrease driven by an 18% decrease in volume and a combined 1% decrease from unfavorable foreign exchange and lower component sales, partially offset by a 10% increase from the Endura acquisition and a 5% increase in AUP.
- Europe net sales were $66 million, an 11% decrease driven by a 9% decrease in volume and a combined 2% decrease from lower component sales and unfavorable foreign exchange.
- Architectural net sales were $88 million, a 16% increase driven by a 24% increase in AUP, partially offset by a 5% decrease from lower component sales and a 3% decrease in volume.
Corporate response
“Ongoing execution of our 2023 Playbook initiatives allowed us to deliver another strong quarter, despite the continued softness in end-market demand,” says Howard Heckes, president and CEO. “We also made progress on our longer-term strategic initiatives as we began the nationwide retail rollout of our Masonite Performance Door System and further reshaped our North American Residential manufacturing footprint. Additionally, I'm especially pleased with the significant cash flow we have generated year to date thanks to early success on our multi-year program to reduce working capital levels across the company. We remain confident that our 2023 Playbook and Doors That Do More strategy are positioning Masonite well both operationally and financially as demand strengthens.”
