Masonite Posts Another “Exceptional” Quarter, Revises Growth Targets

May 7th, 2021 by Tara Taffera

Masonite International Corp. joins the ranks of those companies announcing increased first quarter sales recently, and of those modifying their growth projections for the year. The company’s net sales increased 17% to $646 million; and net income attributable to Masonite increased to $47 million from $30 million. The company now expects full-year 2021 net sales growth in the range of 12 to 15%, reflecting both robust residential demand and the expectation that current foreign exchange tailwinds may continue throughout the year, officials said.

“Strong residential end market demand set the backdrop for another exceptional quarter of financial performance,” said Howard Heckes, president and CEO. “These favorable market conditions, coupled with our previously implemented pricing actions, allowed us to exceed both our net sales and adjusted EBITDA expectations. We achieved these results despite mounting inflationary pressure on both material costs and logistics.”

An increase in net sales was the result of a 14% rise in average unit price, a 2% increase due to favorable foreign exchange and a 1% increase in the sale of components and other products, according to the company.

Sales were particularly strong in North America where residential net sales were $477 million, a 24% increase compared to the first quarter of 2020, driven by a 17% increase in average unit price (AUP), a 5% increase in base volume, a 1% increase due to favorable foreign exchange and a 1% increase in the sale of components and other products.

Total company gross profit was $159 million in the first quarter of 2021, an increase of 18%, compared to $134 million in the first quarter of 2020.

“Based on the continued strength of our residential end markets, favorable foreign exchange, and actions we are taking to offset inflation, we have raised our outlook accordingly,” Heckes said. “While inflation presents a near term challenge, we continue to expect strong full year margin growth and we believe 2021 will be an exceptional year overall for Masonite’s growth.”

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