Ferguson Grows Revenue By More Than 10 Percent
The company grew 7.1 percent on a like-for-like basis
In the U.S., Ferguson ended the year with sales of nearly $15 billion, an increase of 10.4 percent, which included price deflation of 0.5 percent mainly due to falling commodity prices in the first half. Trading profits were 8.2 percent ahead of last year, and the trading margin was 8 percent. The company grew 7.1 percent on a like-for-like basis, which measures growth of Ferguson’s existing stores or branches that have been open for at least one year, up 3 percent over the prior year.
Ferguson’s blended branches (locations that serve a mix of residential and commercial customers), Waterworks, HVAC and Fire and Fabrication all generated good growth and gained market share. Industrial revenues recovered after a weak first half. Build.com, the company’s B2C ecommerce business, continued to grow strongly throughout the year. Ferguson’s B2B and B2C online sales accounted for 22 percent of Ferguson’s revenue.
“Ferguson continues to outperform our markets by delivering world-class customer service,” said CEO Kevin Murphy. “We are incredibly proud of our strong finish. Our performance is the direct result of our associates going above and beyond to meet the needs of our customers.”
Ferguson closed on nine acquisitions this fiscal year:
- Matera, a distributor of commercial and industrial cleaning chemicals, supplies, and equipment;
- P.V. Sullivan Supply, a commercial supplier in the Northeast region;
- Custom Lighting & Hardware and Lighting Unlimited, lighting showrooms in Houston;
- Signature Hardware, an online distributor of vanities, bathing products, sinks, and related hardware and accessories;
- Underground Pipe and Valve, offering a full line of water and sewer products through locations in Indiana and Michigan;
- Westfield Lighting, a lighting showroom serving Indianapolis;
- Ramapo Wholesalers, a plumbing and HVAC supplier serving southeast New York and northern New Jersey; and
- The Plumbing Source, a single-location plumbing supplier serving Honolulu.
Also in fiscal year 2017, Wolseley announced a name change to Ferguson plc and its intent to report in U.S. dollars beginning Aug. 1, 2018.
For more information, visit www.fergusonplc.com.
Publication date: 10/13/17