24th Jul 2014 08:18
LONDON (Alliance News) - Electrocomponents PLC said Thursday it has seen a good sales performance in most of its markets in the first quarter to end-June, except the UK and France.
Adjusting for trading days and foreign exchange movements, the company saw sales growth of 3% in the first quarter, with 4% growth in May and June.
Its international business, which makes up 70% of total revenues, saw revenues up 5%, as the UK declined by 2%. Continental Europe was up 2%, impacted by a weaker market in France, North America was up 8% and the Asia Pacific region was up 8%.
Electrocomponents said it has continued with the planned investment in its global strategy, and has seen further good progress on the strategy in the quarter. eCommerce sales rose 5%, and sales of its Famous For products, which includes its electronics, automation and control ranges, also rose 5%.
Gross margin was down 0.8%, due to strong sales growth in North America and its Famous For products, and increased discounting in the UK and Asia Pacific region.
"We are taking action to improve the sales performance in the UK and France and the gross margin in Asia Pacific, and we will continue to invest in our global strategy in order to drive performance and deliver our medium-term growth ambitions," said Chief Executive Ian Mason in a statement.
Shares in Electrocomponents were trading down 4.8% at 245.70 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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