Recently, Sherwin-Williams disclosed its operating performance report for the first quarter of 2024, with consolidated net sales of $5.367 billion in the first quarter, a year-on-year decrease of 1.4%; total profit was US$2.531 billion, up 4.5% year-on-year; Gross margin was 47.2%, up 270 basis points.
Consolidated net sales declined 1.4 percent, at the low end of the previous forecast, with lower-than-expected architectural coatings volumes, partially offset by the contribution of a modest pricing strategy. Gross profit margin increased year-on-year, mainly due to lower raw material costs. The increase in selling and administrative expenses (SG&A) in the first quarter was also due to Sherwin-Williams' continued investment strategy of "customer-centricity" from the second half of 2023.
Among them, the paint shop group (PSG) had sales of US$2.873 billion, a year-on-year increase of 0.5%, and a profit of US$493 million, a year-on-year decrease of 6.4%. Sales rose 0.5% with no significant change in growth, with the appropriate gain due to the price increase announced by Sherwin-Williams in January.
In the Consumer Brands Group (CBG) segment, sales of $811 million decreased 7.1% year-over-year, driven by a combination of lower volume and the impact of ownership transfers, partially offset by higher prices in Latin America and Europe. The profit of this part was 153.4 million US dollars, an increase of 63.5% year-on-year; Adjusted earnings were $169.9 million, up 49.3% year-over-year.
In the case of the High Performance Coatings Group (PCG), sales were about 1.681 billion US dollars, down 1.6% year-on-year, although the total volume was affected by the decline, but the increase in production of the acquired companies made up for some of the losses. the profit of the reform part was 237.7 million US dollars, an increase of 8.6% year-on-year; Adjusted profit was $286.9 million, up 6.7% year-over-year. Among them, the increase in sales was driven by the increase in the share of industrial timber (including acquisitions) and coil timber; The sales volume of automotive repair materials did not change significantly compared with the medium-term; The decline in sales of packaging and conventional industrial materials was expected by Sherwin-Williams.
In its 2023 annual earnings report, Sherwin-Williams said it expects consolidated net sales in the first quarter of 2024 to increase or decline by a single-digit percentage year-on-year. For the full year 2024, consolidated net sales are expected to grow by a low-to-mid-single-digit percentage based on the metrics Sherwin-Williams is currently seeing.