HARDI distributors report 7.8 percent revenue decline in December
Heating, Air-conditioning & Refrigeration Distributors International (HARDI) released its monthly TRENDS report, showing sales by HARDI distributors declined by 7.8 percent during December 2023.
The annual sales growth for the 12 months through December 2023 is a decline of 0.3%.
“December was not the most difficult monthly comparison of the year, but it was the weakest sales decline,” said HARDI Macroeconomic & Residential Market Analyst Brian Loftus. “The results this month were challenged by one less billing day and heating degree days were off by 20 percent year-to-year and 20 percent below normal.”
The Days Sales Outstanding, a measure of how quickly customers pay their bills, was near 43 days during December 2023. “The DSO has a normal seasonality, so we need to compare corresponding months to know what the latest number is saying,” Loftus added. “DSO for December has slipped from 44.5 days during December 2020 to 43.5 during December 2021 and December 2022. The December 2023 DSO is down to 43. The performance is impressive after the rapid increase in rates and market downshifting.”
“This sales growth rate trend looks very discouraging, but that is not what I took from the report,” Loftus said. “From an operating perspective, the sales-to-inventory ratio is improving, and the sales comps are easy during the next six months. Going forward, the pace of existing home sales is turning and mortgage rates are shrinking. This annual growth rate chart will be turning higher very soon.”
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