Ferguson releases 2021 fiscal year results

Highlights

• Revenue 14.3% ahead of last year with accelerated market share gains;

• Gross margins of 30.6% were 60bps ahead of last year driven primarily by the distributor’s ability to service customers while managing price inflation, it noted;

• Good cost control ensured strong underlying trading profit delivery of $2,099 million, up $507 million and significantly outpacing revenue growth with profit before tax increasing to $1,891 million;

• Cash generation was solid and the balance sheet remains strong with 0.6x leverage, Ferguson explains;

• Continued to consolidate markets, investing $335 million in seven acquisitions;

• $1.4 billion returned to shareholders during the year via dividends and share buybacks;

• Final dividend of 166.5c per share, bringing total dividend to 239.4c per share, an increase of 15%;

• New $1.0 billion share buyback recently announced;

• UK disposal completed in January 2021 with operations now focused on North America;

• Additional US listing on the NYSE established in March 2021. On track for shareholder vote on US primary listing, spring 2022; and

• Virtual investor day scheduled for Dec. 9.

“We would like to express our sincere thanks to our 31,000 associates for their dedication and commitment, delivering outstanding service and accelerated market-share gains amid a backdrop of COVID-19 and industry supply chain pressures,” Group Chief Executive Kevin Murphy said. “We were pleased with earnings growth that significantly outpaced revenue growth to deliver robust operating leverage and margin, demonstrating the agility of our business model. Cash generation was solid, as we continued to invest in inventory availability to service our customers, while our balance sheet remains strong. We welcomed talented associates from seven acquisitions as we continued to consolidate our fragmented markets.

“The Group started the new financial year with strong momentum, with organic revenue growth at similar levels to Q4 2020/21. We expect a year of good growth overall, but we anticipate a tapering in the second half on tougher prior-year comparatives. We are mindful that the recent tailwinds from inflation on gross margins could moderate, but for the full year ahead, we expect operational improvements to broadly offset headwinds from inflation in the cost base. Given the strong momentum in the business and the agility of our business model, we are well positioned to have a year of good growth and the board continues to look forward to the medium term with confidence.”

Eastern Industrial Supplies raises

more than $70,000 for Teleios Ministry

Eastern Industrial Supplies announced its 2021 Eastern Cares Charity Classic was a phenomenal success. All of the net proceeds from the tournament – $71,381.42 – were donated to Teleios Ministry and will be used to house, educate and support the children in the care of the Daily Bread Life Children’s Home in Tanzania.

“We are overjoyed with the response of so many who partnered with us to be a blessing for the children in Tanzania,” said Mary Jean Rackley, co-organizer of the annual golf tournament.

“Your investment is paying off in incredible ways and changing lives,” Teleios Ministry co-founder Floyd Parker told players and sponsors during the tournament. “Not only for the 125- plus who are directly connected to the children’s home, but also for the more than 350 orphans throughout Tanzania who are supported by the Daily Bread Life Children’s Home.”

A total of 26 teams gathered at the Saluda Valley Country Club in Williamston, S.C. on Oct. 11 to compete in the eighth annual Eastern Cares Charity Classic. The top three teams received a cash prize along with hand-carved ebony wood sculptures from Tanzania. The Merit Brass team – Will Hicks, Chad Pierce, Shon Peppers and Joe Turner – claimed first place and the $800 purse. The Wells Fargo Team – Tommy Davis, Josh Paddock, Trip LaCoste, and Brad Harvey – came in second place and earned the $600 purse. The Allied Group Team – Allen Lee, Ian Barwick, Jason Parketon and Greg Walsh – placed third and claimed the $400 purse.

Allied Group was the tournament’s Titanium Sponsor this year. Platinum Sponsors for the event were: Renfrow Industrial, Richard James Partners, SAM Giving and the Texas Pipe Family of Companies.

Eastern also thanked Stainless, Copper and Carbon Sponsors as well. This year’s Stainless Sponsors were Merit Brass, Milwaukee Valve, Service Transport, Sunbelt Marketing, Tyler Pipe, and the Wall family. Copper Sponsors were AIRpipe USA, American Valve, ASC Engineered Solutions, Carolina Handling, Cross Way Christian Supply, Kelly Pipe, M&T Restoration Properties, Merfish United, Mueller Streamline, Nupi-Americas / NIRON, ProMarketing, PVF Marketing & Sales, Service Metal, Sovereign Financial, Stainless & Nickel Alloy Piping Products, the McDonald family, Viega and Winters Instruments.

Carbon Sponsors were Bradley-Hughes, Cherry Bekaert, Core Pipe, the Doser family, Emerson, Jennings-Dill, Keckley, Pennsylvania Machine Works, Premier Insurance Consultants, Race City Steel, Salem Corp., Sanitary Solutions, Saturn Freight, Southeastern Hose, Spirax-Sarco and TAG Logistics.

Eastern looks forward to hosting the ninth annual Eastern Cares Charity Classic in 2022.