Plumbing and heating products distributor Ferguson posted strong growth in full-year operating profits despite “challenges” stemming from both labour shortages and supply chain woes.
Ferguson said on Tuesday that net sales were up 25.3% year-on-year at $28.56bn, driven by organic growth and further consolidation of our markets through acquisitions.
Operating profits increased 44.6% to $2.82bn, outpacing net sales growth and resulting in an operating margin of 9.9% – up 130 basis points. Diluted earnings per share also rose 44.6% to 9.59p.
Ferguson also highlighted that its balance sheet remained “strong”, with a net debt to adjusted underlying earnings ratio of 1.0x – at the bottom end of the company’s 1.0-2.0x target range.
Chief executive Kevin Murphy said: “For the full year, our teams achieved excellent results despite labor and supply chain challenges. The balance sheet remains strong as we continue to invest for organic growth, consolidate our fragmented markets through acquisitions and return capital to shareholders.
“We are well positioned for the year ahead with diversified end market exposure and a strong balance sheet. The agility of our business model will enable us to navigate macroeconomic headwinds. Importantly, we remain confident in the strength of our markets over the longer term and our financial guidance continues to reflect market outperformance, both organically and from acquisitions.”
As of 1330 BST, Ferguson shares were down 2.48% at 9,762.0p.
Reporting by Iain Gilbert at Sharecast.com
