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TOP NEWS: RS Group like-for-like revenue down on "weak" markets

25th Jan 2024 08:57

(Alliance News) - RS Group PLC on Thursday said revenue declined on a like-for-like basis in the third-quarter, as it grappled with tricky market conditions.

The London-based industrial and electronics products distributor said it saw "weaker than anticipated" markets in its third financial quarter ended December 31, citing a "difficult economic backdrop, geopolitical uncertainty, weak industrial and electronic markets and customer surplus inventory in electronics".

The company said revenue on a like-for-like basis declined 10% year-on-year in its third quarter, driven by a 19% fall in the Americas and a 13% slide in Asia Pacific. Like-for-like revenue in Europe, the Middle East & Africa fell by 5%.

This reflected "weak industrial sentiment" and a "slower unwinding of customer surplus inventory, particularly in electronics and associated products".

Overall revenue increased 1%, however, with RS noting the contribution from the acquisitions of Distrelec and Risoul.

RS Group said: "Notwithstanding continuing geopolitical uncertainty, extended holiday periods and extreme weather, trading in Asia Pacific is improving, [Europe, the Middle East & Africa] is stable and Americas remains challenging with Q4 comparators easing."

RS said it continued investment in growth accelerators and noted opportunities to drive improvements in operational effectiveness.

RS shares were 0.2% lower at 771.40 pence each on Thursday morning in London.

By Tom Budszus, Alliance News slot editor

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