Masonite Reports Hefty Revenue Increase in Second-Quarter Financials

August 13th, 2021 by Tara Taffera

Net sales increased 33% to $662 million versus $500 million. That’s just one of the growth highlights that came out of the recent second-quarter financial results for Masonite International Corp., despite continuing supply chain challenges. Net income attributable to Masonite increased to $35 million from $34 million.

“Robust demand in our residential end markets and solid execution allowed us to achieve strong net sales and Adjusted EBITDA growth despite strengthening inflation headwinds in the quarter,” said Howard Heckes, the company’s president and CEO. “I am extremely proud of this organization’s ability to navigate what was an increasingly difficult backdrop with respect to our supply chain and labor availability.”

The increase in net sales resulted from a 19% increase in base volume, a 7% increase in average unit price (AUP), a 5% increase due to favorable foreign exchange and a 2% increase in the sale of components and other products, according to Masonite.

North American residential net sales were $493 million, a 29% increase compared to the second quarter of 2020, driven by a 19% increase in base volume, a 7% increase in AUP and a combined 3% increase due to favorable foreign exchange and the sale of components and other products. Year-to-date, North American residential net sales were $970 million, marking a 27% increase compared to the first six months of 2020, driven by a 12% increase in AUP, a 12% increase in base volume, a 2% increase due to foreign exchange and a 1% increase in the sale of components and other products.

Europe net sales were $88 million in the second quarter, a 194% increase compared to the second quarter of 2020 due to UK and Ireland operations being idled for approximately one half of the prior year period. Results were driven by a 134% increase in base volume, a 33% increase due to favorable foreign exchange, a 21% increase in AUP and a 7% increase in the sale of components and other products, partially offset by a 1% decrease from the impact of a divestiture.

Also in the second quarter, architectural net sales were $76 million, an 11% decrease compared to the second quarter of 2020, driven by a 16% decrease in base volume, partially offset by a 4% increase in AUP and a 1% increase due to favorable foreign exchange.

Total company gross profit was $164 million in the second quarter of 2021, an increase of 21% compared to $136 million in the second quarter of 2020. Gross profit margin decreased 250 basis points to 24.8%, due to the impact of higher inflation and tariffs on raw materials, rising logistics costs, higher manufacturing wages and benefits and increased investment in the business, partially offset by higher AUP, the company reported.

The company now expects full-year 2021 net sales growth in the range of 17 to 20%, reflecting sustained residential demand, pricing actions taken in response to rapidly changing inflation and the expectation that current foreign exchange tailwinds may continue throughout the year.

“Based on the continued strength of our residential end markets and additional pricing actions taken to mitigate inflation, we have updated our outlook to reflect even stronger net sales growth for the year,” said Heckes.

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