In its latest trading update Electrocomponents has reported strong revenue performance across Q4 with continued market share gains.
The Group has posted Q4 like-for-like revenue growth of 12%, of which about 4% is benefit from weaker COVID-19 comparatives. Within EMEA, UK momentum improved from end of January, resulting in high single digit growth in Q4.
Other EMEA markets grew double digits due to tougher COVID-19 impacts in March 2020.
Year to year in Q3 to December 2020 EMEA sales rose 8%, and in Q4 to March 2021 grew 12%.
In the Americas, sales were up 9% in Q3, and grew 12% in Q4, overcoming the negative impact from extreme weather in February.
Growth in Asia Pacific was underpinned by strong double-digit increase in Greater China. Revenue advanced 10% in Q3 and 12% in Q4.
Own brand RS PRO revenue grew 18% like-for-like (with a 5% benefit from COVID-19 comparatives) and was up 10% in the full year.
Digital like-for-like revenue grew 12% (with a 4% benefit from COVID-19 comparatives). Web revenue rose 14%.
Cost pressures in 2021/22 include ongoing freight inflation, COVID-19 uncertainties, Brexit and translation impact of stronger sterling.
Electrocomponents acquired John Liscombe Limited in February, the third acquisition this financial year. It says all acquisitions performing in line with expectations, with future cross-selling opportunities on track. The company adds, “the pipeline of strategic inorganic opportunities is strong, and we retain a rigorous focus on value creation.”
Lindsley Ruth, Electrocomponents Chief Executive Officer commented: “We are very pleased with another strong performance in the fourth quarter. The business demonstrated its resilience and agility once more, rising to the combined challenges of lockdown, Brexit and extreme weather conditions in Texas with trading not missing a beat. Group performance continued at a similar rate to the third quarter until mid-March. The last two weeks of the period saw a material improvement in revenue growth against weaker comparatives when most of EMEA entered the first COVID-19 lockdowns. We expect profit for the year ended 31 March 2021 to be around the top end of the consensus range.
He added, “The response of our people to the challenges faced this year has been exceptional and our outperformance continues to demonstrate the strength of our differentiated proposition which is resonating with both our customers and suppliers, delivering market share gains and deeper customer relationships. However, we remain highly mindful of the external pressures such as continuing freight inflation, COVID-19 uncertainties, translation headwind from sterling’s strength, Brexit and ongoing unwinding of weak comparatives, but also excited about the trading opportunities we see. Looking forward to the year ahead, we are well positioned to deliver ongoing growth in line with expectations through continued organic and strategic investment, whilst operational efficiencies will drive margins as we continue on our Destination 2025 journey.”
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