(Alliance News) - Ferguson PLC on Tuesday reported a fall in its third quarter sales, but said it expects low single-digit growth in sales for the financial year.
Ferguson is a plumbing and heating products distributor. Its corporate headquarters are located in Wokingham, England, while its operations are based principally in the US.
The company reported net sales of USD7.14 billion for the three months ended on April 30, down 2.0% from USD7.28 million a year before.
The firm said the fall in sales was driven by the 1.9% adverse impact from one fewer sales day and the impact of foreign exchange. Organic revenue declined 2.5% and was largely offset by acquisition growth of 2.4%. Its decrease in net sales was mainly driven by "declines in residential, partially offset by growth in non-residential sales compared to the prior year period", it added.
Ferguson said net sales guidance continues to reflect market outperformance, completed acquisitions and one additional sales day.
Pretax profit for the quarter was USD447 million, down from USD690 million. Booked impairments and other charges of USD127 million, compared to none the year before.
Adjusted earnings before interest, tax, depreciation and amortisation dropped by 11% to USD705,000 from USD795,000
Chief Executive Officer Kevin Murphy said: "The year is progressing as expected and our associates again delivered solid results, leveraging our scale and core strengths to help our customers navigate their complex projects. Our balanced business is serving us well in challenging markets. During the quarter we continued to take targeted actions to manage the cost base and working capital to deliver strong cash flows."
Ferguson declared a quarterly dividend of USD0.75 per share, up 9% year-on-year.
Looking ahead, the firm said it expects low single digit growth for its net sales for financial 2023. Interest expense is expected in the range of USD185 million to USD195 million.
Shares were up 1.4% at 11,955.00 pence each on Tuesday afternoon in London.
By Xindi Wei, Alliance News reporter
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Ferguson (FERG)