Earnings release
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8 October 2021 , 7.00 am Electrocomponents plc today issues a trading update for its first half ended 30 September 2021 ahead of publishing half - year results on 4 November 2021 LINDSLEY RUTH , CHIEF EXECUTIVE OFFICER , COMMENTED : " Our trading has remained very strong across all regions as we have worked closely with suppliers to ensure our product availability , delivery and service offer remain robust , which has driven further growth in both customers and average order value . This has led to our financial performance to date being stronger than expected . We remain cautious about the external challenges and the resulting impact this could have on industry supply and customer demand , but our differentiated offer means we are well placed strategically to continue to gain market share and take advantage of the significant growth opportunities we see . " ● Region EMEA Americas ● STRONG PERFORMANCE AHEAD OF OUR EXPECTATIONS Asia Pacific Group Q1 to June 2021 37 % 40 % 31 % 37 % Like - for - like revenue growth² Versus 2020/21 ( one year ) Q2 to Sept 2021 22 % 35 % 31 % 26 % H1 to Sept 2021 29 % 37 % 31 % 31 % Revenue performance remains strong as we continue to manage our product availability proactively ● One - year like - for - like H1 revenue growth was 31 % , with acquisitions contributing a further 7 % , trading days 1 % and foreign exchange a 6 % headwind to deliver total revenue growth of 33 % . Two year like - for - like H1 revenue growth was 22 % . Our electronics product range , which is c . 22 % of Group revenue , grew two - year like - for - like H1 revenue by 33 % . Within EMEA , revenue performance was broadly similar across our main markets , benefiting from an improved operational model and focus . The UK suffered slightly over the COVID - 19 ' pingdemic ' but has since recovered . Germany is gaining momentum driven by leadership team changes and refocused sales processes . Our distribution centre expansion is in early stage commissioning and will bring us closer to our European customers . Americas continues to perform very strongly due to the significant investment in our people and culture , digital and marketing proposition , and a wider product offer resulting from our distribution centre extension . Versus 2019/20 ( two year ) H1 to Sept 2021 19 % 27 % 29 % 22 % Asia Pacific growth reflects a strengthened management team , change in culture and refocused sales processes which are driving strong market share gains in both the industrial and electronics markets . Integration of our acquisitions is progressing as planned , delivering cross - Group benefits and new contract wins . Our own - brand , RS PRO , grew two - year like - for - like H1 revenue by 28 % despite having a limited electronics range . Web two - year like - for - like H1 revenue increased by 26 % , with like - for - like digital participation of 63 % . Operating efficiency improved across all regions although cost pressures remain Improvements in gross margin delivered through product management work is being partly offset by regional and product mix dilution and ongoing cost pressures from inbound freight inflation . We continue to experience higher outbound freight charges , costs to serve and labour inflation which are showing no signs of abating . We increased operational investment to strengthen our expertise , technological capabilities and product and service capacity to improve the efficiency of our operating basics and support future growth . We are on track to improve operational efficiencies and deliver our Destination 2025 target of a 30 % adjusted operating profit conversion and mid - teens adjusted operating profit margin . Our cash generation and conversion remain strong , supporting our organic and inorganic growth opportunities . Our financial performance to date has been stronger than expected Looking forward , we face much tougher comparatives and a number of external challenges , including supply chain shortages , which are affecting industrial production and increasing cost pressures . Hence , we expect our full year profit to be more weighted to the first half than in previous years .