Company: GGG
Filing Date: 2025-04-23
Form Type: 10-Q
Source: 0000042888-25-000014
Chunk: 33

Company: GRACO INC
Filing Date: 2025-04-23
Form: 10-Q
Item: Item 8
Chunk 33
---
9 Gross Profit52.6 54.1 Product development3.7 4.4 Selling, marketing and distribution12.7 13.5 General and administrative8.9 9.1 Operating Earnings27.3 27.1 Interest expense0.1 0.2 Other (income) expense, net(1.5)(1.6)Earnings Before Income Taxes28.7 28.5 Income taxes5.2 3.7 Net Earnings23.5 %24.8 %

Net Sales

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

 Three Months Ended    March 28,2025March 29,2024Americas(1)$323.2 $306.5 EMEA(2)121.0 111.1 Asia Pacific84.1 74.6 Consolidated$528.3 $492.2 

(1)     North, South and Central America, including the United States

(2)    Europe, Middle East and Africa

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

Three MonthsVolume and PriceAcquisitions CurrencyTotalAmericas3%3%(1)%5%EMEA(1)%13%(3)%9%Asia Pacific6%10%(3)%13%Consolidated3%6%(2)%7%

Gross Profit

The gross profit margin rate declined approximately 2 percentage points for the first quarter from the comparable period last year due to the unfavorable effects of lower margin rates from acquired operations and higher product costs.    

17

Operating Expenses

Total operating expenses for the quarter were flat compared to last year, including approximately $10 million (7 percentage points) of incremental expenses from acquired operations, which were offset by lower product development spending and unallocated corporate expense (primarily driven by lower share-based compensation).  

Other (Income) Expense

Other income for the first quarter included a $5 million gain from the sale of a former manufacturing and distribution facility in Switzerland. Excluding the facility sale, other income decreased  $5 million for the quarter from the comparable period last year mostly due to $3 million of incremental exchange losses on net assets of foreign operations and lower interest income of $1 million.

Income Taxes

The effective income tax rate was 18 percent for the first quarter, up approximately 5 percentage points from the comparable period last year. The