10th Jan 2023 08:41
(Alliance News) - RS Group PLC on Tuesday said it expects its annual outturn to be at the top end of consensus, as the industrial and electronic product provider shakes off a "tougher economic backdrop and strong comparatives".
RS, a London-based industrial and electronics products distributor, said like-for-like revenue grew 8% year-on-year in the third quarter ended December 31.
Growth slowed from 15% in the second quarter and 18% in the first. Year-to-date, like-for-like revenue is up 14%.
In the Europe, Middle East & Africa region, like-for-like revenue grew 12% year-on-year in the third quarter.
Chief Executive Officer David Egan said: "Our differentiated proposition continues to resonate as we grow market share with our core industrial customer base, prioritising our efforts on where we can add greatest value. We have continued to outperform thanks to the strength of our high-performing people who are focused fully on delivering our strategy. Tight control of our pricing, costs and inventory indicates that our full year adjusted profit will be towards the top end of consensus estimates."
Revenue consensus ranges from GBP2.71 billion to GBP3.04 billion. Adjusted pretax profit consensus ranges from GBP350.4 million to GBP374.9 million. For financial 2022, revenue amounted to GBP2.55 billion, up 28% from GBP2.00 billion the year before. Adjusted pretax profit was GBP313.8 million, up 73% from GBP181.7 million.
RS added: "We continue to be mindful of a more challenging backdrop but remain confident in the strength of our people and differentiated proposition."
Last week, the FTSE-100 company completed the acquisition of Risoul y Cia SA de CV, which RS in August said was for a cash consideration of USD275 million on a cash-free and debt-free basis. Risoul is a family-owned distributor of industrial and automation product and service solutions in Mexico.
Shares were down 1.7% at 937.50 pence each on Tuesday morning in London.
By Xindi Wei, Alliance News reporter
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