US-based home improvement giant Masco Corporation has reported a significant boost to profits, despite sales figures being down.
In its Q3 financial statement, Masco – the parent company behind brands such as Hansgrohe, Bristan and Heritage – reported a net income of $249m (£206m), which is an increase of around 13% over 2022’s Q3 result.
Operating profit was also up from $351m in Q3 2022 to $383m for the same period in 2023.
However, its net sales figures were down 11%. This year’s third quarter net sales amounted to $1.9m in comparison to $2.2m in September 2022.
A similar financial trend for increased profits but decreased sales was also reported by BSH UK in its 2022 financial accounts released earlier this month. The appliance giant primarily attributed its economic success to an increase in its product prices.
Masco’s CEO, Keith Allman, said: “Our continued ability to successfully execute in a challenging demand environment, along with our continued focus on driving productivity improvements led to strong margin performance and earnings per share growth in the third quarter.
“While the near-term demand environment for repair and remodel products remains uncertain, we are executing well and demonstrating the earnings power of our business model.”
Looking ahead to Masco’s economic future, Allman said: “We remain committed to investing in our brands and capabilities to drive strong growth when market conditions improve, and are well-positioned to create long-term shareholder value.”
Earlier this year, Masco’s Hansgrohe brand announced its expansion into new product categories, with the launch of a collection of sanitaryware, furniture and mirrors, in a bid to offer its customers a holistic bathroom solution.