Wolseley Sales Up 22.9% in Fiscal 1Q - Modern Distribution Management

Wolseley Sales Up 22.9% in Fiscal 1Q

Group sales growth led by 30.5 percent revenue increase in the U.S.

European distributor Wolseley plc reported sales for the fiscal first quarter ended Oct. 31 of £4.4 billion (US$5.6 billion), up 22.9 percent over the same period a year ago. Trading profit grew 21.2 percent to £303million (US$385.4 million).

"U.S. like-for-like revenue growth was 4.2 percent with commercial and residential markets continuing to grow well and industrial markets steadying. Good volume growth was partly offset by the ongoing impact of commodity price deflation which reduced the U.S. revenue growth rate by 2.4 percent," said Wolseley Chief Executive John Martin. "Our other markets were more challenging as the UK heating market was weak and Nordic construction markets deteriorated. While revenue growth trends have improved slightly we continue to manage costs and productivity very carefully while continuing to drive customer service and strong cash conversion."

Ferguson, Wolseley's U.S. business, reported first-quarter sales of £2.9 billion (US$3.8 billion), up 8.9 percent over a year ago (based on a constant-currency comparison). On a like-for-like basis, sales grew 4.2 percent, including price deflation of 2.4 percent. Acquisitions contributed another 2.6 percent of revenue growth. In constant currency, trading profit increased 6.6 percent to £251 million (US$319.3 million).

In Canada and Central Europe, sales increased 19.5 percent to £343 million (US$436.3 million). Like-for-like revenue was down 2.7 percent. Trading profit declined 4.5 percent to £21 million (US$26.7 million).

In the UK, sales were down 2.2 percent to £499 million (US$634.8 million). Like-for-like revenue decreased 2.9 percent. Repairs, maintenance and improvement markets remained weak. Trading profit for the period declined 10.5 percent to £17 million (US$21.6 million).

In the Nordic region, sales grew 4.8 percent to £582 million (US$740.4 million), and like-for-like revenue declined 2.9 percent as construction markets deteriorated. Trading profit decreased 4 percent to £24 million (US$30.5 million).

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.