Indoff acquisition boosts Global results

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Indoff acquisition boosts Global results

Last May’s acquisition of furniture and business products reseller Indoff had a positive impact on the top and bottom lines of Global Industrial in 2023.

Global – which specializes in supplying the SMB market – reported 2023 revenue of $1.27 billion, a year-on-year increase of 9.3%. Its own organic sales were down slightly after a slow start to the year, but Indoff – acquired at the end of May for $72 million – contributed around $100 million.

Gross profit margin for the year was 34.2%, down by 190 basis points on 2022. This was largely due to the lower margin profile at Indoff, which is something Global is looking to improve over time.

Global reported 2023 operating profit of $96.5 million, which represented an organic decrease of 13.7%. Indoff contributed about $6 million in operating profit for the year.

In its earnings call, Global said it had seen double-digit increases in ocean freight costs in the first quarter of 2024 due to shipping disruptions in the Red Sea. However, the belief is that this will be fairly short-lived.

 

This story was originally published as premium content by our sister publication OPI.
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