Ferguson PLC Announces Results for the half year ended January 31, 2021

Rhea-AI Summary

Ferguson plc (NYSE:FERG) announced its financial results for the first half of 2021, showing a 4.2% increase in revenue to $10.3 billion compared to $9.9 billion in the same period last year. Profit before tax rose by 17.7% to $739 million, while basic earnings per share increased 33.7% to 271.1c. The company is implementing a $400 million share buyback program and will pay a special dividend of 180 cents per share in May 2021. Despite challenges, Ferguson maintains a strong balance sheet with low leverage of 1.0x.

Positive

• Revenue grew by 4.2% to $10.3 billion despite one fewer trading day.
• Profit before tax increased by 17.7% to $739 million.
• Basic earnings per share rose by 33.7% to 271.1c.
• Interim dividend increased to 72.9c per share.
• Good operating cash generation with a strong balance sheet showing 1.0x pro-forma leverage.
• $224 million invested in acquisitions.

Negative

• Gross margin decreased by 0.2% due to business and channel mix.
• Supply chain pressures and transport costs may impact future profits.

WOKINGHAM, UK / ACCESSWIRE / March 16, 2021 / Ferguson plc (NYSE:FERG)(LSE:FERG)("Company"):

US$ millions			H1 2021			H1 2020 (restated)1				Change
Statutory financial results
Revenue			10,309				9,893				+4.2	%
Profit before tax			739				628				+17.7	%
Basic earnings per share			271.1	c			202.7	c			+33.7	%
Interim dividend per share			72.9	c			-
Alternative performance measures2
Gross margin			30.0	%			30.2	%			(0.2	%)
Trading profit			875				781				+12.0	%
Less impact of IFRS16			(38	)			(35	)
Underlying trading profit			837				746				+12.2	%
Headline earnings per share			269.3	c			235.1	c			+14.5	%
Adjusted EBITDA3			918				828				+10.9	%
Net debt : Adjusted EBITDA4			0.6	x			1.1	x

Highlights

• Strong operational delivery in the first half:
  • Revenue 4.2% ahead of last year, despite one fewer trading day.
  • Gross margin down 0.2% driven by business and channel mix.
  • Excellent cost control ensured good underlying trading profit delivery up 12.2%, or $91 million.
  • Good operating cash generation and very strong balance sheet with 1.0x pro-forma leverage⁵.
• Invested $224 million primarily in four acquisitions in the first half.
• UK disposal completed in the period. Special dividend of 180 cents per share (approximately $400 million) will be paid in May 2021.
• Interim dividend increased to 72.9c per share, will be paid in May 2021.
• New $400 million share buy back announced today.
• Additional US listing delivered and trading commenced on the New York Stock Exchange on March 8, 2021.

1) The Group disposed of its UK operations on January 29, 2021. Pursuant to IFRS requirements, the UK results have been reclassified to discontinued operations and the prior year comparative results have been restated.

2) The Group uses Alternative Performance Measures ("APMs"), which are not defined or specified under IFRS, to provide additional helpful information. These measures are not considered to be a substitute for IFRS measures and are consistent with how business performance is planned, reported and assessed internally by management and the Board. For further information on APMs, including a description of our policy, purpose, definitions and reconciliations to equivalent IFRS statutory measures see note 2.

3) Continuing operations only, excludes the impact of IFRS16. Adjusted EBITDA contribution from discontinued operations in the period was $57 million (2020 restated: $48 million)

4) Net debt excludes lease liabilities and Adjusted EBITDA excludes the impact of IFRS 16. Leverage ratio utilizes a trailing twelve months adjusted EBITDA for both continuing and discontinued operations.

5) Pro-forma net debt adjusted to include the impact of $400 million special dividend and $400 million share buy back.

Kevin Murphy, Group Chief Executive, commented:

"Ferguson delivered good top-line growth in the first half and despite challenging personal and professional circumstances, our associates continued to deliver for our customers. We continued to carefully manage the cost base to ensure excellent profit growth and solid cash flow generation. We remain confident in our strategy and are optimistic about our prospects in 2021 and beyond.

"Since the start of the third quarter, we have continued to trade well, generating high single digit organic revenue growth. While the outlook for the second half remains very uncertain, we expect to generate above market revenue growth in good residential markets aided by increasing inflation. However, we expect this to be partially offset by increasing supply chain pressures, transportation costs and the reversal of temporary cost reduction actions taken during the initial stages of the lockdown starting in April of last year. We are well positioned to manage through this environment and we will continue to invest in talented associates and digital capabilities to serve our customers and take advantage of market opportunities."

For further information please contact

Ferguson plc
Bill Brundage, Group Chief Financial Officer	Tel:	+1 757 223 6092
Mark Fearon, Director of Corporate Communications and IR	Mobile:	+44 (0) 7711 875070
Media Enquiries
Mike Ward, Head of Corporate Communications	Mobile:	+44 (0) 7894 417060
Nina Coad, David Litterick (Brunswick) Jonathan Doorley (Brunswick)	Tel: Tel:	+44 (0) 20 7404 5959 +1 (917) 459 0419

Please click on or paste the following URL into the web browser to view the announcement in full

http://www.rns-pdf.londonstockexchange.com/rns/3293S_1-2021-3-15.pdf

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

SOURCE: Ferguson PLC

View source version on accesswire.com:
https://www.accesswire.com/635668/Ferguson-PLC-Announces-Results-for-the-half-year-ended-January-31-2021

FAQ

What are Ferguson plc's H1 2021 revenue figures?

Ferguson plc reported revenue of $10.3 billion for the first half of 2021.

How much did Ferguson plc's profit before tax increase in H1 2021?

Profit before tax increased by 17.7% to $739 million in H1 2021.

What is the basic earnings per share for Ferguson plc in H1 2021?

The basic earnings per share for Ferguson plc in H1 2021 is 271.1c.

What is the interim dividend announced by Ferguson plc?

Ferguson plc announced an interim dividend of 72.9c per share.

When will Ferguson plc pay its special dividend?

Ferguson plc will pay a special dividend of 180 cents per share in May 2021.

What is the market outlook for Ferguson plc?

Ferguson plc expects above-market revenue growth in good residential markets, despite potential supply chain pressures.