DJ Travis Perkins plc - Q3 2021 trading update
Travis Perkins (TPK) Travis Perkins plc - Q3 2021 trading update 28-Oct-2021 / 07:00 GMT/BST Dissemination of a Regulatory Announcement, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.
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"Dissemination of a Regulatory Announcement that contains inside information in accordance with the Market Abuse Regulation (MAR)"
28 October 2021
Travis Perkins plc - Q3 2021 trading update
Continued positive trading momentum; increasing 2021 earnings guidance
Highlights
-- Positive trading momentum has continued with like-for-like sales growth of 13.1% (13.3% on a two yearlike-for-like basis)
-- The Merchanting business delivered like-for-like sales growth of 15.3% (11.8% on a two year like-for-likebasis) with end market demand remaining robust, notably in RMI
-- Toolstation grew by 1.4% on a like-for-like sales basis (25.2% on a two-year like-for-like basis) in Q3as customer mix normalised following exceptional demand from DIY customers during 2020
-- Given robust underlying performance, the Board now expects that adjusted operating profit for the fullyear 2021 will be ahead of current market expectations* and will be at least GBP340m (inclusive of around GBP40m ofproperty profits)
Nick Roberts, Chief Executive, commented:
"The Group has delivered a strong performance in the third quarter and is navigating well-documented supply chain and cost inflation challenges very capably. End market demand remains robust and we are confident that we are in a strong position to deliver future growth.
As outlined at our Investor Update in September, the focus of the Group is to enhance our market leading propositions to win share and to provide new value added services to our customers as the construction process evolves to improve quality, drive efficiency and reduce carbon and waste."
*Market expectations defined as company compiled analyst consensus. This stood at GBP316m at time of publication and can be reviewed via: https://www.travisperkinsplc.co.uk/investors/analyst-consensus
Q3 2021 sales growth Merchanting Toolstation Group Like-for-like sales growth 15.3% 1.4% 13.1% Net space change (0.1)% 7.7% 1.1% Business disposals - - - Trading days - - - Total sales growth 15.2% 9.1% 14.2% Two-year like-for-like 11.8% 25.2%** 13.3% 2021 YTD sales growth Merchanting Toolstation Group Like-for-like sales growth 34.3% 19.3% 31.7% Net space change (4.8)% 8.6% (2.5)% Business disposals - - - Trading days (0.6)% (0.3)% (0.5)% Total sales growth 28.9% 27.6% 28.7% Two-year like-for-like 11.3% 36.7%** 14.1%
**Excludes Toolstation Europe
Business performance
-- Overall Group positive trading momentum has continued with two year like-for-like sales growth of 13.3%in Q3, broadly in line with H1.
-- The Merchanting business delivered two-year like-for-like sales growth of 11.8% in Q3, slightly ahead ofH1. Total sales growth versus 2020 was in line with like-for-like sales at 15.2% as the business has now fullycycled the June 2020 branch closure programme. At a business unit level, the Travis Perkins General Merchantdelivered another excellent performance whilst the specialist businesses continue to see strengthening end marketdemand.
-- In Toolstation, demand from the core trade customer base remains very robust. The business is inexcellent shape with total UK sales some 45% ahead of 2019 during the third quarter. In Europe, the rollout of newbranches is on track and the business continues to attract new trade customers.
-- Industry wide inflationary pressure, driven by heavyside manufacturer and core commodity price increases,has accelerated in the period with price inflation of around 11% in Q3 (compared to around 7% in Q2).
-- The Group continues to benefit from its extensive supply chain and strong supplier relationships in orderto maximise product availability to customers. Despite the challenges presented, colleagues across all businesseshave worked incredibly hard to ensure that disruption to customer service has been minimal.
Group Chief Financial Officer Alan Williams will be hosting a call for analysts and investors at 8.30am BST. Dial in details are available via the following link:
https://www.travisperkinsplc.co.uk/sites/travis-perkins/files/investors/TPK-2021-Q3-Invite.pdf
Enquiries:
Travis Perkins Powerscourt Matt Worster James White / Ngozi Emeagi +44 (0) 7990 088548 +44 (0) 207 2501446 matt.worster@travisperkins.co.uk travisperkins@powerscourt-group.com Heinrich Richter +44 (0) 7392 125417 heinrich.richter2@travisperkins.co.uk
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ISIN: GB00BK9RKT01 Category Code: QRT TIDM: TPK LEI Code: 2138001I27OUBAF22K83 OAM Categories: 3.1. Additional regulated information required to be disclosed under the laws of a Member State Sequence No.: 125378 EQS News ID: 1244150 End of Announcement EQS News Service =------------------------------------------------------------------------------------
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(END) Dow Jones Newswires
October 28, 2021 02:00 ET (06:00 GMT)
