Company: GGG
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000042888-25-000011
Chunk: 53

Company: GRACO INC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 7
Chunk 53
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)22.6 %23.9 %

Net Sales

The following table presents net sales by geographic region (in millions):

20242023Americas(1)$1,329.3 $1,338.0 EMEA(2)454.2 463.9 Asia Pacific329.8 393.7 Consolidated$2,113.3 $2,195.6 

(1)     North, Central and South America, including the U.S. Sales in the U.S. were $1,149 million in 2024 and $1,162 million in 2023.

(2)    Europe, Middle East and Africa.

The following table presents the components of net sales change by geographic region:

20242023Volume and PriceAcquisitionsCurrencyTotalVolume and PriceAcquisitionsCurrencyTotalAmericas(1)%0%0%(1)%4%0%0%4%EMEA(4)%1%1%(2)%0%0%3%3%Asia Pacific(16)%1%(1)%(16)%(1)%0%(3)%(4)%Consolidated(4)%1%(1)%(4)%2%0%0%2%

In 2024, net sales declined in all regions and in most end markets compared to 2023. Declines in global semiconductor markets drove sales lower in the Americas and Asia Pacific. Reduced project activity for automotive, electronics and e-mobility end markets, especially in China, furthered sales declines in Asia Pacific. In the Americas, strong finishing system sales were unable to offset soft residential and non-residential construction markets. In EMEA, decreased industrial activity in Western Europe led to lower sales in 2024.

Gross Profit

26

The gross profit margin rate for 2024 increased slightly as the favorable effects of realized pricing more than offset unfavorable product and channel mix, lower sales volume and higher product costs.

Operating Expenses

Total operating expenses increased $38 million (7 percent) for 2024 compared to 2023. Operating expenses for 2024 included $13 million in incremental litigation costs associated with a trial that concluded in December of 2024, $13 million of investments in new product development and other growth initiatives, $7 million of business reorganization costs and $7 million of expenses from acquired operations. Reductions in volume and earnings-based expenses of $14 million for the year partially offset the increase in operating expenses. Investment in