Electrocomponents PLC (LON:ECM) said it had a strong start to its financial year but industry supply constraints started to affect growth as it moved into the second quarter.
The electronics distributor reported 37% year-on-year revenue growth in the quarter ended 30 June. Sales were up 22% compared to two years ago.
It added that it remains “on track” to deliver like-for-like revenue growth in the low double-digit to mid-teens for the full year, which is expected to see operating profit margins return to levels seen two years ago.
Chief executive Lindsley Ruth said the strong performance in the first quarter was “due to ongoing market share gains as our offer continues to resonate with our customers, an improved market backdrop and weaker comparatives”.
He added: “We expect industry supply chain constraints to reduce both product availability and customer demand into the balance of the year, thereby slowing top line growth, albeit we expect to still deliver at least twice the industry growth.”
The FTSE 250-listed group said higher freight and other costs relating to Coronavirus (COVID-19) and Brexit seen in the past financial year have continued.
Cash generation remains “strong”, it added, which it will use to invest in future growth.