5th Dec 2023 12:19
(Alliance News) - Ferguson PLC on Tuesday said first-quarter profit and sales fell, although it increased its dividend payout alongside forking out USD108 million as part of an ongoing share buyback programme.
The Wokingham, England-based heating and plumbing products distributor also said its full-year guidance remained unchanged and that it was confident in the strength of its market over the medium and long term.
In the three months that ended October 31, net income fell 13% to USD519 million from USD595 million a year earlier, while basic earnings per share fell 11% to USD2.55 from USD2.85.
This tracked net sales falling 2.8% to USD7.71 billion from USD7.93 billion.
Despite the declining year-on-year performance, Ferguson opted to raise its first quarter dividend by 5.3% to USD0.79 from USD0.75 a year earlier.
Ferguson also repurchased USD108 million in shares during the quarter, with an outstanding balance of around USD400 million remaining under its current share buyback programme as of October 31.
"The year has started in line with our expectations. I would like to thank our associates for their strong execution in delivering solid results with continued market outperformance against a challenging backdrop," said Chief Executive Officer Kevin Murphy.
"Our cash generative model and strong balance sheet allow us to invest for organic growth, sustainably grow our dividend, consolidate our fragmented markets through acquisitions and return capital to shareholders."
Looking ahead, Ferguson said it expects full-year net sales to be "broadly flat" compared to a year earlier. Net sales in financial 2023 amounted to USD29.73 billion.
"Our [financial 2024] financial guidance is unchanged and our balanced end market exposure positions us well to leverage emerging multi-year structural tailwinds such as non-residential megaprojects," continued CEO Murphy.
"We remain confident in the strength of our markets over the medium and longer term and expect to capitalize on attractive growth opportunities."
Shares in Ferguson were down 0.7% to 13,260.00 pence each in London on Tuesday afternoon.
By Greg Rosenvinge, Alliance News senior reporter
Comments and questions to [email protected]
Copyright 2023 Alliance News Ltd. All Rights Reserved.
Related Shares:
Ferguson