RS Group (the distribution group formerly known as Electrocomponents) has reported year on year revenues up 16 % in the first half of its financial year to September.
EMEA revenues grew 15 % reflecting an improving customer mix and growth in share of customer wallet, Asia-Pacific rose 10 % impacted by a lack of single board computer product.
The Americas took top billing with revenue growth of 21 %, benefitting from focused sales and digital campaigns and high customer demand. A strong inventory position supported availability to drive market share gains.
RS Group’s industrial product group outperformed electronics, with the former posting like for like revenues up 21 %.
And the group’s own-brand RS PRO saw revenues soar 21 % due to greater availability and website personalisation.
Web like for like revenue was up 15 %. Digital participation now stands at 63 %.
Consensus for the year ending 31 March 2023 is revenue of £2,858 million, adjusted operating profit of £364.9 million and adjusted profit before tax of £357.7 million, slightly ahead of consensus.
Lindsley Ruth, Chief Executive Officer commented, “We continue to grow market share, reflecting the strength of our people, our purpose-led culture and differentiated offer. Our active inventory management to support availability, coupled with a more commercial operating model and improved pricing, lead us to expect full year revenue and adjusted profit to be slightly ahead of consensus expectations. We remain mindful of the more challenging economic backdrop but believe we have built a strong, sustainable business that can withstand external headwinds and outperform the market. As such, we will continue to invest in our product and service solutions capability and customer experience to support our Journey to Greatness and drive profitable growth, capitalising on the significant market share opportunity we see.”
He added, “While we are expecting slower economic growth in the second half, we have several financial levers we can employ, if appropriate, to protect our profit. However, we remain confident in the strength of our people and proposition, especially in this environment, in driving further market share gains to generate stronger revenue and high-quality profitable growth.”
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