August 1, 2023
Simon Pryce, Chief Executive Officer of RS Group plc, comments on Quarter 1 (Q1) results
SIMON PRYCE, CHIEF EXECUTIVE OFFICER: “Trading for the quarter was marginally softer than anticipated, reflecting the more difficult macroeconomic backdrop and tough comparatives. We are reacting well in this more challenging trading environment, with greater focus and by managing our cost base effectively whilst continuing to make strategic investments for the future. I am confident in the RS strategy and scale of opportunity as we continue to position the Group to deliver long-term and through-cycle value creation for our stakeholders.”
Like-for-like revenue growth
|Region||Q1 to June 2022||Q2 to Sept 2022||Q3 to Dec 2022||Q4 to Mar 2023||Q1 to June 2023|
Q1 revenue marginally softer than anticipated reflecting softening PMI data, a weak electronics market, and tough comparatives.
- Total revenue declined by 2%, with 6% added from the acquisitions of Risoul and domnick hunter.
- Like-for-like revenue declined 7%, reflecting a more challenging environment as indicated by deteriorating PMI data, the continued tough electronics market, and the weakening industrial market.
- Trading in EMEA and Americas was marginally softer than anticipated and volatile in Asia Pacific.
- Q1 like-for-like revenue was impacted by the 2022/23 strategic repositioning of OKdo reducing Group revenue by over 1%, as well as the lack of the previously reported Q1 2022/23 tailwinds of constrained supply (particularly for electronics products) and customer inventory builds, which are now unwinding.
- Industrial product ranges like-for-like revenue, c. 78% of Group, was flat. Electronics products range declined 24%.
- The £313 million Distrelec acquisition completed at the end of June, which expands our continental European presence and has significant synergy potential.