Jasper, IN—MasterBrand Cabinets, Inc. sales increased 31 percent in the second quarter, reaching $706 million in revenue for the unit of Fortune Brands Home & Security. Sales for the first six months reached $1.393 billion, up 20 percent.
Nick Fink, CEO of MasterBrand’s parent corporation Fortune Brands, says the momentum will continue for years, since U.S. housing stock is under-built by millions of homes.
“The two largest segments of the population—millennials and baby boomers—both have significant need for housing and home products,” says Fink. “Millennials, the largest segment of the population will be great for us for years to come in forming and upgrading households, accelerating the need for homebuilding and driving investment in new homes and repair and remodeling. This demographic is still in the early stages of fueling housing growth.”
Baby boomers, meanwhile, are retiring in large numbers with record equity in their homes and retirement accounts and are upgrading and adjusting their homes.
“Our cabinets operations again delivered excellent performance in the past quarter with sales running 31 percent ahead and operating margin of 10.9 percent,” Fink says. Noting this marks four consecutive quarters of double-digit growth, Fink said demand was impressive in both value-priced cabinets and its made-to-order brands.
“Our current record backlog in cabinets is a clear sign of the strong demand for our products,” Fink says. “Our new facility in Georgia is fully open and ramping up production to serve demand.”
MasterBrand‘s first-half 2021 results in kitchen cabinet sales track consistently with industry figures reported by the Kitchen Cabinet Manufacturers Association for the same period: KCMA’s June 2021 Trend of Business Survey reported year-to-date cabinet sales through June 2021 were up 20.2 percent versus the first half of 2020. KCMA survey participants include stock, semi-custom, and custom cabinet manufacturers whose combined sales represent approximately 75 percent of the U.S. kitchen cabinet and bath vanity market. For the first six months, custom cabinet sales were up 23.5 percent, semi-custom cabinet sales rose 20.9 percent, and stock cabinet sales increased 19.1 percent.