Compass Diversified (CODI) Bundle
An Overview of Compass Diversified (CODI)
General Summary of Compass Diversified (CODI)
Compass Diversified (CODI) is a leading investment firm founded in 2006 that specializes in acquiring and managing a diverse portfolio of branded consumer and industrial businesses. As of 2024, the company has expanded its reach across various markets, focusing on sectors such as consumer products, industrial manufacturing, and e-commerce.
Currently, CODI operates multiple subsidiaries, including notable brands in the consumer space like BOA, Lugano, and The Honey Pot Co. The company reported net sales of approximately $387.4 million for the nine months ended September 30, 2024, representing a slight increase of 0.4% compared to $385.7 million for the same period in 2023. This growth is attributed to a rise in international sales and direct-to-agency sales, offset by declines in direct-to-consumer and domestic wholesale sales.
Company's Financial Performance in the Latest Financial Reports
In its latest financial report for the three months ended September 30, 2024, CODI achieved net revenues of $582.6 million, an increase of 11.8% compared to $521.1 million for the same quarter in 2023. The gross profit for this period was $274.6 million, resulting in a gross profit margin of approximately 47.1%, up from 43.2% in the previous year.
| Period | Net Revenues | Gross Profit | SG&A Expenses | Net Income (Loss) |
|---|---|---|---|---|
| Q3 2024 | $582.6 million | $274.6 million | $158.8 million | $31.5 million |
| Q3 2023 | $521.1 million | $225.3 million | $132.9 million | $(14.0) million |
For the nine months ended September 30, 2024, CODI reported net sales of $1.649 billion, a 10.6% increase from $1.492 billion in the same period of 2023. The company’s gross profit for this period was $775.5 million, translating to a gross profit margin of approximately 47.0%. Significant contributors to revenue growth included BOA and Lugano, which saw increases of $29.3 million and $117.4 million, respectively.
Introduction to Company as a Leader in the Industry
Compass Diversified is recognized as one of the leading companies in its industry due to its strategic acquisition and management of a diverse portfolio that caters to various consumer needs and industrial applications. The company's ability to adapt to market demands and capitalize on growth opportunities has solidified its position within the competitive landscape. In 2024, CODI continues to focus on enhancing its operational efficiencies and expanding its market presence.
For those interested in understanding the factors behind CODI's success, further exploration into its operational strategies, market dynamics, and financial metrics is recommended.
Mission Statement of Compass Diversified (CODI)
Mission Statement Overview
The mission statement of Compass Diversified (CODI) serves as a guiding principle for the company, reflecting its commitment to generating long-term value for its stakeholders through strategic acquisitions and operational excellence. This mission is crucial for aligning the organization's efforts towards common goals, ensuring that all employees and management are working towards a shared vision of success.
Core Component 1: Commitment to Quality
Compass Diversified emphasizes its dedication to delivering high-quality products and services. This commitment is evident in its diverse portfolio of brands, which includes companies like Ergobaby and The Honey Pot Co. For example, Ergobaby reported net revenues of approximately $71.5 million for the nine months ended September 30, 2024, showcasing the brand's strong market presence and consumer trust.
Core Component 2: Strategic Growth through Acquisitions
The company focuses on strategic growth through acquisitions that enhance its portfolio and market reach. In 2024, CODI completed the acquisition of The Honey Pot Co. for a total of $42 million, which underscores its strategy to expand into high-growth consumer segments. Furthermore, the sale of Marucci Sports in November 2023 for an enterprise value of $572 million reflects CODI's ability to capitalize on market opportunities.
Core Component 3: Sustainable Financial Performance
Compass Diversified's mission includes a focus on sustainable financial performance, aiming for consistent revenue growth and profitability. For the nine months ended September 30, 2024, CODI reported net revenues of approximately $1.65 billion, an increase from $1.49 billion in the same period the previous year. This growth is indicative of the company's effective management practices and operational efficiencies.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Revenues | $582.6 million | $521.1 million | 11.8% |
| Gross Profit | $274.6 million | $225.3 million | 21.9% |
| Operating Income | $70.3 million | $17.4 million | 303.1% |
| Net Income | $31.5 million | ($3.8 million) | >100% |
Through its mission statement, Compass Diversified articulates a clear path towards maintaining high standards of quality, pursuing strategic acquisitions, and ensuring sustainable financial success. This alignment of objectives positions the company for continued growth in the competitive landscape of diversified consumer brands.
Vision Statement of Compass Diversified (CODI)
Vision Statement Overview
The vision statement of Compass Diversified (CODI) focuses on becoming a leading player in the consumer goods sector, emphasizing growth through strategic acquisitions and operational excellence. As of 2024, CODI aims to enhance its market position while maintaining a commitment to sustainability and innovation.
Strategic Growth and Market Leadership
A key component of CODI's vision is its commitment to strategic growth. In 2024, the company achieved net revenues of approximately $582.6 million for the third quarter, compared to $521.1 million for the same period in 2023, reflecting a growth rate of 11.8% year-over-year. This growth is driven by an increase in international sales and new customer acquisitions across various segments.
Commitment to Sustainability
Compass Diversified is dedicated to sustainability, aiming to minimize its environmental footprint while maximizing operational efficiency. The company has initiated several sustainability programs, which have contributed to a 10% reduction in overall operational waste compared to 2023. In 2024, CODI plans to invest $2 million in sustainable technologies to enhance its supply chain efficiency.
Innovation in Product Development
Innovation is a cornerstone of CODI's vision. The company has launched several new products in 2024, which account for 15% of total sales in the first nine months of the year. This reflects a proactive approach to meet changing consumer demands and market trends. The company’s investment in research and development has increased by 20% from the previous year, emphasizing its focus on product innovation.
Operational Excellence and Efficiency
Operational excellence is crucial for CODI's long-term success. The company reported a gross profit of $274.6 million for the third quarter of 2024, translating to a gross margin of 47.1%, an improvement from 43.2% in the same quarter of 2023. This enhancement in operational efficiency is attributed to better manufacturing processes and supply chain management.
Financial Performance and Future Outlook
As of September 30, 2024, CODI's total assets amounted to $3.96 billion, with total liabilities of $2.46 billion, resulting in stockholders’ equity of $1.5 billion. The company anticipates continued growth in revenue and profitability, projecting a net income of approximately $23.5 million for the first nine months of 2024, compared to $123 million in the same period in 2023.
| Financial Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Revenues | $582.6 million | $521.1 million | 11.8% |
| Gross Profit | $274.6 million | $225.3 million | 21.9% |
| Gross Margin | 47.1% | 43.2% | 3.9% |
| Total Assets | $3.96 billion | $3.82 billion | 3.7% |
| Total Liabilities | $2.46 billion | $2.30 billion | 7.0% |
| Net Income | $23.5 million | $122.9 million | -80.9% |
Core Values of Compass Diversified (CODI)
Integrity
Integrity is a core value that underscores Compass Diversified's commitment to ethical practices and transparency in all operations. This value is reflected in the company's interactions with stakeholders, employees, and the community.
Compass Diversified has demonstrated its commitment to integrity through various initiatives, including adherence to regulatory compliance and ethical standards in financial reporting. For instance, in its latest financial statements, the company reported a net income of $23.5 million for the nine months ended September 30, 2024, reflecting its focus on honest and accurate financial disclosures.
Collaboration
Collaboration emphasizes the importance of teamwork and partnership both within the organization and with external stakeholders. This value is crucial for driving innovation and achieving shared goals.
In 2024, Compass Diversified has actively engaged in collaborative projects across its subsidiaries. For example, the company reported a 25.8% increase in net sales, totaling approximately $142.7 million for the nine months ended September 30, 2024, driven by enhanced collaboration in supply chain management and marketing strategies across its diverse portfolio.
Excellence
Excellence is a core value that drives Compass Diversified to pursue the highest standards in product quality, customer service, and operational efficiency. This commitment to excellence is reflected in the company’s performance metrics.
For the three months ended September 30, 2024, Compass Diversified achieved a gross profit of $74.7 million, representing a gross profit margin of 53.7%. This reflects a consistent focus on operational excellence and effective cost management.
Innovation
Innovation is integral to Compass Diversified's strategy for growth and sustainability. The company fosters a culture that encourages creative solutions and the development of new products and services.
In 2024, the company has invested significantly in research and development, resulting in the launch of several new product lines across its business segments. This focus on innovation contributed to a reported increase in international sales by $8.5 million, showcasing the success of its innovative approaches to meet market demands.
Social Responsibility
Social responsibility reflects Compass Diversified's commitment to making a positive impact on society and the environment. This value is increasingly important to stakeholders and influences the company's operational strategies.
In 2024, Compass Diversified has engaged in multiple community outreach programs and sustainability initiatives. The company has allocated resources towards environmental sustainability, evidenced by a reduction in waste and improved energy efficiency across its operations, which aligns with its long-term strategic goals.
| Core Value | Initiative/Program | Impact |
|---|---|---|
| Integrity | Regulatory Compliance | Net income of $23.5 million for Q3 2024 |
| Collaboration | Supply Chain Management | 25.8% increase in net sales to $142.7 million |
| Excellence | Operational Efficiency | Gross profit of $74.7 million, 53.7% margin |
| Innovation | New Product Development | $8.5 million increase in international sales |
| Social Responsibility | Community Outreach | Improved sustainability metrics |
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Article updated on 8 Nov 2024
Resources:
- Compass Diversified (CODI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Compass Diversified (CODI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Compass Diversified (CODI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.