Ferguson Plc (LON:FERG.L) saw strong organic growth in the US help its first-quarter trading profit and revenue increase solidly year-on-year.
The FTSE 100 listed trade distributor of plumbing and heating products – formerly known as Wolseley – reported trading profit of US$394mln for the three months to October 31, 13.7% higher than a year earlier at constant exchange rates, with gross margin up 20 basis points to 29.0%.
READ: Ferguson higher as strong US performance offsets weak UK growth
The group said its overall first quarter revenue rose by 10% to US$5.191bn, up 7.6% on an organic basis, with its US business growing organic revenue by 8.3%, and UK organic revenue up 3.2% mainly as a result of price inflation.
John Martin, Ferguson’s group chief executive, commented: "The growth was widespread across all geographic regions and major business units and our gross margin performance was solid.
“Growth in Canada was also strong, though market conditions remain challenging in the UK where we are continuing to implement our transformation programme."
READ: Ferguson higher as Citigroup ups rating to ‘buy’ ahead of former Wolseley firm's full year results
The company noted that since the end of the quarter, organic revenue growth has been broadly in line with the first quarter and, as a result, it expects its full year trading profit to be in line with current consensus expectations.