Global Industrial makes a big gain in gross profit margins

0

Global Industrial Co., a billion-dollar distributor of industrial and maintenance, repair and operation (MRO) products and services, ended 2021 with record gross profit margins despite a 4.3% decline in net sales in the fourth quarter. But Global Industrial notes that the fourth quarter of 2021 had five fewer days than the prior year period, resulting in a 3.5% increase in average daily sales.

Global Industrial is committed to remaining a leader in digital transformation.

Barry Litwin, CEO

Global Industrial Society.

Barry Litwin, CEO, Global Industrial Co.

The company, where e-commerce orders accounted for 56% of total transactions last year, is following a multi-pronged strategy of improving supply chains and customer accounts as well as continued investment in digital commerce to increase earnings even when recent pandemic-related market pressures have hurt demand and sales, says CEO Barry Litwin.

“We are currently optimistic that supply chain challenges may normalize as we move forward into 2022,” Litwin said on the company’s fourth quarter and year-end earnings call. company last week. “However, if they continue, we have shown and remain confident in our ability to handle these challenges.”

The company is more focused on improving its results, he told analysts. “Profitability remains strong as we mitigated significant product and transportation cost inflation and leveraged pricing information to deliver another quarterly gross margin record of 37%,” he said, according to a transcript of Seeking Alpha.

“For the second consecutive quarter, we achieved double-digit operating margins, the first time the company has achieved this level of profitability in consecutive periods.”

For the full fiscal year ended December 31, 2021, Global Industrial reported a 3.3% year-over-year increase in net sales to $1.063 billion; net income was $33.2 million, compared to $1.3 million a year earlier.

Going forward, the company will focus on its Customer Experience Acceleration (ACE) program of continuously improving the way Global Industrial interacts with and serves its customers in industrial, commercial and public sector markets.

“As we approach 2022, our ACE focus is continued investment and execution which we believe will enable us to expand our market share and capitalize on our growth opportunity,” Litwin said. “In our sales organization, we will expand our sales team with a focus on public sector sales, as well as the launch of a strategic account management team that will focus on larger and more complex accounts. ” Global Industrial claims to have access to more than 100,000 public sector buyers through its group purchasing organizations.

“On the digital front, Global Industrial is committed to remaining a leader in digital transformation,” adds Litwin. “Our mission is to provide our customers with a modern, informative and frictionless user experience across all digital channels. We are currently developing a new website platform with a completely updated user experience on desktop, tablet and mobile. With additional features, customization, new look and navigation.

To improve supply chain operations, Global Industrial launched a Supplier Portal in 2020, where it shares information with suppliers on customer demand and other matters to help suppliers manage their production operations and execution.

Litwin will explain how to build a multifaceted strategy for multichannel growth as a speaker on June 10 at EnvisionB2B in Chicago.

Sign up for a free subscription to Digital Commerce 360 ​​B2B News, published 4x/week, covering technology and business trends in the growing B2B e-commerce industry. Contact the publisher Paul Demery at [email protected] and follow him on Twitter @pdemery.

follow us on LinkedIn and be the first to know when new Digital Commerce 360 ​​B2B News content is released.

Favorite

Share.

Comments are closed.