The surge in Electrocomponents fortunes has continued into the second quarter. The distributor reported revenue growth of 13% in the first half of its financial year to September 2017.
All five regions came up trumps, contributing double digit advances on sales compared to 2016. Europe revenues were up 13%, Asia and Emerging markets climbed 17%, and North America grew 16%.
The company cited a combination of strong execution and a positive market which stimulated faster revenue growth and market share gains across all five of our regions.
The company also reported continued strong momentum in eCommerce with 14% H1 revenue growth, an acceleration in growth for RS Pro, its own-brand business, in Q2 leading to growth of 10% in H1 revenue.
It did however raise a warning that trading comparatives will toughen in H2 with underlying revenue growth trends in the year to March 2017 of 2.1% in H1 and 7.5% in H2.
An investment in inventory during H1 has improved stock availability and supported faster revenue growth and, as such, Electrocomponents expects to see a higher than normal weighting of cash flow to the second half of our year to March 2018.
On the wave of this strong momentum investments are being made in areas such as innovation and digital in H2 to support future growth. A more even distribution of profits is expected between H1 and H2 in the current financial year.