Ferguson PLC, (NYSE: FERG), based in Wokingham, United Kingdom, reported Tuesday that its fiscal year 2021 revenue climbed 14.3% from a year ago to $22.79 billion. Ferguson said the increase was mainly due to accelerated market share gains.
Ferguson’s underlying trading profit for the year that ended July 31 was $2.1 billion, which marked a 32%% increase from a year ago. Earnings per share were 688.1 cents compared to 508.0 cents last year.
“We were pleased with earnings growth that significantly outpaced revenue growth to deliver robust operating leverage and margin, demonstrating the agility of our business model,” said Ferguson Chief Executive Kevin Murphy. “Cash generation was solid, as we continued to invest in inventory availability to service our customers, while our balance sheet remains strong. We welcomed talented associates from seven acquisitions as we continued to consolidate our fragmented markets.
“We expect a year of good growth overall, but we anticipate a tapering in the second half on tougher prior year comparatives. We are mindful that the recent tailwinds from inflation on gross margins could moderate but for the full year ahead we expect operational improvements to broadly offset headwinds from inflation in the cost base. Given the strong momentum in the business and the agility of our business model, we are well positioned to have a year of good growth and the Board continues to look forward to the medium term with confidence.”
Also on Tuesday, Ferguson announced plans for a new $1 billion buyback. Based on its solid results, Ferguson increased its total dividend by 15% to 239.4 cents per share, from 208.2 cents a year ago.