RS Group raises profit expectations as FTSE 100-listed industrial supplier continues to grow market share
- H1 FY2023 like-for-like revenue increased 16%
RS Group said it now expects full-year revenue and adjusted profit to be slightly above expectations after a strong first half.
The industrial and electronics retailer’s first-half fiscal 2023 like-for-like revenue rose 16%, but it warned investors on Thursday that it was aware of a fragile macroeconomic environment.
RS Group, formerly known as Electrocomponents, said that for the year ending March 31, 2023, consensus estimates are for revenue of £2.86 billion and adjusted pre-tax profit. of £357.7 million.
Optimistic: RS Group said it expects full-year revenue and adjusted profit to be slightly above expectations
Shares of RS Group rose today and were up 2.09% or 21.00p at 1,027.00p by late morning.
Boss Lindsley Ruth, said: “We continue to grow our market share, reflecting the strength of our people, our goal-oriented culture and our differentiated offering.
“Our active inventory management to support availability, coupled with a more commercial operating model and improved pricing, leads us to expect full year revenue and adjusted profit to be slightly above expectations. consensus.
“We remain mindful of the tougher economic backdrop, but believe we have built a strong and sustainable business that can withstand external headwinds and outperform the market.”
“As such, we will continue to invest in our product and service solutions capabilities and customer experience to support our journey to greatness and drive profitable growth, capitalizing on the market share opportunity. important that we see.”
The group’s revenue rose 15% in the second quarter, which it attributed to “volume growth and reflects the continued expansion of market share”.
RS said EMEA saw broad-based growth across the region, reflecting improved customer mix and growth in customer wallet share. The Americas benefited from targeted sales and digital campaigns and strong customer demand, he added.
He added: “A strong inventory position supported availability to drive market share gains.”
Victoria Scholar, Head of Investments at Interactive Investor, said: “RS Group shares have done very little over the past year, trading slightly down a few per cent, a slight underperformance against the FTSE 100 and outperforming the FTSE 250.
“This is a company that has demonstrated its resilience in a difficult environment of inflation, a slowing economic trajectory and supply chain disruptions.”