01—Abstract
Summary
Summary of the 10-K filed February 20, 2024. Cited figures are marked; the original filing is the authoritative source.
The Sherwin-Williams Company reported record net sales of $23.05 billiona for the fiscal year ending December 30, 2023, an increase of 4.1% over the previous year.
This growth was driven primarily by price increases across its segments and robust sales volume in the Paint Stores Group, which saw comparable store sales increase by 6.8%. Diluted net income per share rose by 19.8% to $9.25b, with adjusted diluted net income per share increasing to $10.35, reflecting improved gross margins due to moderating raw material costs and effective pricing strategies.
The company generated strong net operating cash of $3.52 billionc, a significant improvement from the prior year, enabling strategic investments in business expansion, acquisitions (including the German-based SIC Holding GmbH), debt reduction, and capital returns to shareholders through dividends and share repurchases. Sherwin-Williams continues its expansion strategy, with plans to open 80-100 new stores in the U.S. and Canada in 2024 and ongoing investments in new headquarters and R&D facilities.
02—Key points
Key Highlights
- Record Net Sales of $23.05 billion, up 4.1% year-over-year.
- Diluted EPS increased 19.8% to $9.25, with adjusted diluted EPS up to $10.35.
- Paint Stores Group showed strong performance with comparable store sales up 6.8%.
- Generated robust Net Operating Cash of $3.52 billion, demonstrating improved cash flow.
- Acquired SIC Holding GmbH, strengthening the Performance Coatings Group.
- Reduced total debt outstanding by $718.8 million.
- Continued capital return to shareholders via dividends and share repurchases.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2023, Sherwin Williams Co kept $0.10.
- Revenue$23.05B100.0%
- Cost of revenue−$12.29B53.3%
- Gross profit$10.76B46.7%
- Operating costs−$6.60B28.6%
- Operating income$4.16B18.1%
- Interest, other & tax−$1.77B7.7%
- Net income$2.39B10.4%
04—Financials
Financial Highlights
Figures from 10-KFY2023filed February 20, 2024Financial Statements
FY2023 against FY2022
| Line item | FY2023FY2022 | Change |
|---|---|---|
| Revenue | $23.05B$22.15B | +4.1% |
| Cost of Revenue | $12.29B$12.82B | −4.1% |
| Gross Profit | $10.76B$9.33B | +15.4% |
| SG&A Expenses | $7.07B$6.33B | +11.6% |
| Operating Income | $4.16B$3.40B | +22.5% |
| Interest Expense | $417.50M$390.80M | +6.8% |
| Net Income | $2.39B$2.02B | +18.3% |
| EPS (Basic) | $9.35$7.83 | +19.4% |
| EPS (Diluted) | $9.25$7.72 | +19.8% |
| Shares Outstanding (Basic) | 255.40M258.00M | −1.0% |
| Shares Outstanding (Diluted) | 258.30M261.80M | −1.3% |
05—Questions
Frequently Asked Questions
What was Sherwin-Williams' revenue performance in 2023?
Sherwin-Williams achieved record net sales of $23.05 billion in 2023, representing a 4.1% increase compared to 2022. This growth was primarily driven by pricing actions and a healthy increase in sales volume within the Paint Stores Group.
How did the company's profitability evolve in 2023?
The company reported a significant increase in profitability, with diluted net income per share rising by 19.8% to $9.25. Adjusted diluted net income per share also saw a substantial increase to $10.35, benefiting from improved gross margins attributed to moderating raw material costs and effective pricing strategies.
What is the company's outlook for 2024, and what are the key growth drivers?
Sherwin-Williams anticipates continued growth in 2024, with plans to open 80-100 new stores in the U.S. and Canada. The company expects resilience in its Automotive Refinish and Industrial Wood segments, while acknowledging potential softness in General Industrial and Packaging. Strategic investments in innovation and customer-focused solutions are key drivers for continued market share gains.
How did Sherwin-Williams manage its debt and return capital to shareholders in 2023?
The company demonstrated strong financial management by reducing its total debt outstanding by $718.8 million. Sherwin-Williams also continued its commitment to shareholder returns, distributing $2.056 billion through cash dividends and share repurchases during the year.
06—Continue