PGT Innovations announced financial results for its second quarter ended July 3, 2021. Year over year indicators suggest overall growth.
Y-O-Y Financial Highlights for Q2
Net sales
41 percent increase
Gross profit
30 percent increase
“PGT Innovations achieved sales growth of 41 percent in the second quarter as we continue to see economic growth across our key markets,” says Jeff Jackson, president and chief executive officer. “Organic growth was 29 percent in addition to $24 million of sales contribution from Eco [Enterprises], which we acquired in January of this year. In our Southeast Business Unit, sales were up 40 percent, and in our Western Business Unit, sales were up 44 percent, as the recoveries we’ve seen in Arizona and California continue.”
“Order entries increased 35 percent over the prior-year quarter, as demand continues to be robust across our geographies and business channels,” Jackson continued. “We remain focused on increasing capacity by adding new equipment and the needed headcount to support the growing demand. I am excited that we successfully added nearly 600 employees. As we focused on hiring and training new employees to maintain our high standards for safety and quality, these efforts generated higher costs and inefficiencies resulting in a gross margin decline of 270 basis points compared to the second quarter of 2020. Gross margin did not get the full benefit of the price increases as products being shipped in the quarter were from backlog generated prior to the price increases taking effect.”
“Looking toward the second half of the year, we expect that price increases and the benefits from increased efficiencies will enable us to improve margins in both the third and fourth quarters,” says Jackson.
