The following is a summary of the MasterBrand, Inc. (MBC) Q1 2024 Earnings Call Transcript:
Financial Performance:
MasterBrand reported a decline in Q1 2024 net sales to $638 million, a 6% decrease compared to the same period last year, primarily due to anticipated trade downs and resumed normal promotional activity.
First-quarter gross profit stayed stable at $204.7 million with a margin expansion to 32.1%, a 190 basis point increase year-over-year.
Adjusted EBITDA for the quarter was $79 million, increasing the margin by 40 basis points compared to Q1 last year.
Disciplined management around working capital facilitated a delivery of $12 million in free cash flow for the period.
Business Progress:
Progress was witnessed in the sectors servicing new construction despite a decline in the repair and remodel market.
Operational performance showed positive growth, realizing cost savings from strategic initiatives and continuous improvement efforts.
Tech-enabled initiatives are underway, providing better data and improved insights for the quality team.
Forecasted capital expenditures for 2024 are expected to increase investment spending to between $55 million and $65 million.
Acceleration of tech-enabled initiatives in Q2 is expected to elevate expenditures, bringing future benefits.
Business is expected to follow standard seasonal patterns with orders peaking in Q3 from a rise in Q2.
Despite challenges like land availability and labor shortages, signs of recovery are seen in lagging regions' new construction.
More details: MasterBrand IR
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