While net sales decreased in MasterBrand's first quarter, gross profits were slightly up, and the company continued to make "meaningful progress across all our strategic initiatives." 

MasterBrand, the largest residential cabinet manufacturer in North America, which is ranked #7 on the FDMC300 listing of the largest North American wood products manufacturers, is embarking on it second full year as an independent company.  

The company said that the progress being made "will allow us to achieve our full year 2024 outlook while simultaneously investing in the business for growth.” 

“We delivered a solid quarter of results to start the year, with continued year-over-year adjusted EBITDA margin expansion and strong first quarter free cash flow,” said Dave Banyard, President and Chief Executive Officer. “We are pleased to see the year progressing largely in line with our expectations, from both an end market demand and an operational standpoint. The team continued to make meaningful progress across all our strategic initiatives: Align to Grow, Lead through Lean and Tech Enabled. We are reaping the benefits of prior work in these areas, and we believe our current efforts will continue to yield results in the future.”

First quarter 2024

Net sales were $638.1 million, compared to $676.7 million in the first quarter of 2023, a decrease of 5.7%. Gross profit was $204.7 million, flat compared to $204.6 million in the prior year. Gross profit margin expanded 190 basis points to 32.1%, as cost savings from strategic initiatives and continuous improvement, more than offset the negative impact of lower average selling prices, due primarily to trade downs and a return to normal promotional activities, and personnel inflation.

Net income was $37.5 million, compared to $35.0 million in the first quarter of 2023, an increase of 7.1%, due to lower interest expense and a lower effective tax rate.

Adjusted EBITDA1 was $79.4 million, compared to $81.5 million in the first quarter of 2023. Adjusted EBITDA1 margin expanded 40 basis points to 12.4%, compared to 12.0% in the first quarter of 2023.

Diluted earnings per share were $0.29 compared to $0.27 in the first quarter of 2023. Adjusted diluted earnings per share1 were $0.29 compared to $0.28 in the first quarter of 2023.

“With our first quarter financial and operational performance in line with our expectations, we are reiterating our full year 2024 outlook provided on February 26, 2024,” said Andi Simon, Executive Vice President and Chief Financial Officer. “Despite some increased macroeconomic uncertainty, we believe our initial view of end market demand remains intact, and continued execution on our strategic initiatives will allow us to achieve our full year 2024 outlook while simultaneously investing in the business for growth.”