Sherwin-Williams has announced its financial results for the second quarter ended 30 June 2021, which show consolidated net sales increased 16.9 per cent.
The company reported consolidated net sales as US$5.38 billion, with the increased sales primarily due to higher product sales volume in The Americas Group and Performance Coatings Group but partially offset by lower product sales volume in the Consumer Brands Group. Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased in the quarter to US$1.05 billion, or 19.5 per cent of sales.
“We delivered solid performance in the second quarter driven by robust architectural paint demand in The Americas Group and strong demand across our industrial end markets, which more than offset the return to more normal DIY end market demand levels,” said John Morikis, Chairman, President and Chief Executive Officer of Sherwin-Williams.
“Along with the strong demand, we also implemented pricing actions to offset the significant sustained raw material inflation that pressured our gross margin in the quarter.
“Despite the near-term gross margin compression, we delivered 11.8 per cent adjusted diluted net income per share growth and 7.4 per cent EBITDA growth in the quarter. Our cash generation remained strong, which enabled us to continue investing in long-term strategic growth initiatives, repurchase 3.1 million shares in the second quarter and open 25 new stores.”
Commenting on the company’s outlook, Morikis said that demand remains robust across nearly all of Sherwin-Williams’ end markets, but industry raw material inflation is more significant and sustained than originally anticipated.
“We continue to have great confidence we will offset these higher costs with the incremental price increases we have announced, and we are prepared to implement additional increases should they become necessary,” he said.
“While our industry is operating in a challenging environment, our team has repeatedly demonstrated its ability to manage through these types of pressures just as we have done in many past cycles. We will continue to manage through disruptions in the supply chain and focus on controlling what we can control, while providing differentiated solutions and excellent service to our customers.”