Compass Diversified’s (CODI) Branded Consumer net sales, which includes 5.11 Tactical, Boa, The Honey Pot, Lugano, Primaloft, and Velocity Outdoor, increased 8 percent in the 2024 fourth quarter to $403.0 million year-over-year. On a pro forma basis, Branded Consumer net sales increased 10 percent to $1.5 billion in the full year 2024.

“For the full year 2024, our consumer vertical saw pro forma revenues grow double digits, and pro forma adjusted EBITDA increased by greater than 27 percent versus prior year,” offered Patrick Maciariello, partner & COO, Compass Diversified, on a conference call with analysts. “This is despite the onetime impact of an approximately $12 million write-down of inventory at 5.11 related to PFAs regulations. Excluding this impact, our pro forma adjusted EBITDA on the consumer segment grew over 30 percent and our adjusted EBITDA margin was greater than 27 percent, representing a more than 400 basis point improvement over 2023.”

BOA

BOA, creator of the patented BOA Fit System, saw net sales for full-year 2024 amount to $190.8 million, an increase of $35.0 million or 22.5 percent, when compared to net sales of $155.8 million for the year ended December 31, 2023. The increase was reportedly reflected across key industries including Cycling, Athletic, Workwear, Outdoor and Snow Sports. The increase in sales was said to be the result of the improvement of end market inventory levels, coupled with market share gains in many of the brand’s key industries.

Gross profit was $119.2 million, or 62.5 percent of net sales, for the year ended December 31, 2024, compared to gross profit of $93.0 million, or 59.7 percent of net sales, for the year ended December 31, 2023. The 280 basis-point increase in gross margin was reportedly driven by manufacturing overhead leverage as well as product mix.

Selling, general and administrative (SG&A) expense for the year was $55.3 million, or 29.0 percent of net sales, compared to $49.0 million, or 31.5 percent of net sales for 2023. The $6.3 million increase in SG&A expense in 2024 was said to be primarily due to increased employee costs related to BOA’s bonus plan as well as strategic investments in talent across the organization.

BOA’s operating income was $47.2 million for the year, compared to $27.3 million in segment operating income in the year ended December 31, 2023, an increase of $19.9 million, or 72.9 percent year-over-year.

Compass Diversified
Compass Diversified (CODI), parent of the 5.11 Tactical, Boa, Primaloft, and Velocity Outdoor consumer brands, posted net sales of $620.3 million in the 2024 fourth quarter, up 13.8 percent compared to $544.9 million in the fourth quarter of 2023.

For the full year 2024, CODI’s consolidated net sales were $2.2 billion, up 11.9 percent compared to $2.0 billion in 2023.

For the full year 2024, CODI operating income increased 170 percent to $230.1 million compared to $85.2 million a year ago. The increase was reportedly due to an increase in net sales year-over-year, as well as non-cash impairment charges taken in 2023 of $89.4 million.

For the full year 2024, CODI net income was $47.4 million compared to $262.4 million in 2023. The decreases in net income were due primarily to the $179.5 million gain on the sale of Marucci Sports in November 2023 and the $98.0 million gain on the sale of Advanced Circuits in February 2023.

For the full year 2024, CODI income from continuing operations was $42.3 million compared to loss from continuing operations of $44.8 million in 2023. The increases in net income from continuing operations were primarily due to the non-cash impairment expenses associated with PrimaLoft and Velocity Outdoor in 2023.

For the full year 2024, CODI Adjusted Earnings was $161.6 million compared to $101.2 million a year ago.

For the full year 2024, CODI Adjusted EBITDA was $424.8 million, up 30 percent compared to $326.5 million a year ago. The increases were primarily due to strong results at Lugano. Management fees incurred during the fourth quarter and full year were $19.5 million and $74.8 million, respectively.

Image courtesy BOA/Compass Diversified