Ferguson Enterprises Inc. · NYSE:FERG
Ferguson Enterprises — Q2 2022 Earnings Presentation
22 slides from Ferguson Enterprises's earnings presentation, Mar 15, 2022
Slide 1: Second Quarter and Half Year Results Presentation
2021/22 Second Quarter and Half Year Results Presentation Results to January 31, 2022
Slide 2: Cautionary note on Forward-Looking statements
2021/22 Second Quarter and Half Year Results Presentation Cautionary note on Forward-Looking statements Forward-Looking Statements Certain information included in this presentation and discussed on the conference call that this presentation accompanies is forward-looking, including within the meanin
Slide 3: Highlights and introduction
Highlights and introduction 1 Kevin Murphy, Group Chief Executive Ferguson plc | 2021/22 Second Quarter and Half Year Results Presentation | March 15, 2022 3
Slide 4: Second quarter financial results
2021/22 Second Quarter and Half Year Results Presentation Second quarter financial results Net sales ($m) Adjusted operating profit* ($m) Adjusted EPS – diluted* 6,508 588 $1.93 4,937 350 $1.10 2021/22 2020/21 2021/22 2020/21 2021/22 2020/21 +31.8% +68.0% +75.5% * This is a non-GAAP measure. See our
Slide 5: Corporate highlights
Section Second 2021/22 heading Quarter and Half Year Results Presentation Corporate highlights • Interim dividend increased by 15% to $0.84 per share • Completed four acquisitions in second quarter, six in first half • Increasing share buy back program by an additional $1.0 billion, to $2.0 billion
Slide 6: Market update: US end-market revenue growth
Section Second 2021/22 heading Quarter and Half Year Results Presentation Market update: US end-market revenue growth H1 2022 H1 2022 Organic revenue % of US revenue Estimated market growth growth1 Residential 55% Approx. 20% +24% Non-residential 45% Mid twenties +31% 100% Low to mid twenties +27.2%
Slide 7: Financial review
Financial review 2 Bill Brundage, Group CFO Ferguson plc | 2021/22 Second Quarter and Half Year Results Presentation | March 15, 2022 7
Slide 8: Second quarter financial highlights
Section Second 2021/22 heading Quarter and Half Year Results Presentation Second quarter financial highlights $m (except per share amounts) Q2 2022 Q2 2021 Change Net sales 6,508 4,937 +31.8% Gross margin 30.6% 30.4% +20bps Adjusted operating profit* 588 350 +68.0% Adjusted operating margin* 9.0% 7.
Slide 9: USA second quarter
Section Second 2021/22 heading Quarter and Half Year Results Presentation USA second quarter $m Q2 2022 Q2 2021 Change Net sales 6,172 4,654 +32.6% Organic revenue growth +29.4% +3.4% Adjusted operating profit* 576 350 +64.6% Adjusted operating margin % 9.3% 7.5% +180bps • Strong growth from market
Slide 10: USA second quarter revenue growth
Section Second 2021/22 heading Quarter and Half Year Results Presentation USA second quarter revenue growth Q2 2022 % of US Total Customer group revenue1 growth Residential Trade 20% +31% Residential Building and Remodel 14% +21% Residential Digital Commerce 10% +24% HVAC 11% +33% Commercial / Mecha
Slide 11: Canada second quarter
Section Second 2021/22 heading Quarter and Half Year Results Presentation Canada second quarter $m Q2 2022 Q2 2021 Change Net sales 336 283 +18.7% Organic revenue growth +13.8% +7.9% Adjusted operating profit* 23 13 +76.9% Adjusted operating margin % 6.8% 4.6% +220bps • Good revenue growth in suppor
Slide 12: Half year financial highlights
Section Second 2021/22 heading Quarter and Half Year Results Presentation Half year financial highlights $m (except per share amounts) H1 2022 H1 2021 Change Net sales 13,311 10,309 +29.1% Gross margin 30.9% 30.0% +90bps Adjusted operating profit* 1,355 834 +62.5% Adjusted operating margin* 10.2% 8.
Slide 13: Interest and tax
Section Second 2021/22 heading Quarter and Half Year Results Presentation Interest and tax $m H1 2022 H1 2021 Interest Net interest expense 49 50 Tax Adjusted tax charge* 321 196 Adjusted effective tax rate* 24.6% 25.0% Interest and tax as expected * Adjusted tax charge and adjusted effective tax ra
Slide 14: Cash flow
Section Second 2021/22 heading Quarter and Half Year Results Presentation Cash flow $m H1 2022 H1 2021 Adjusted EBITDA from continuing operations 1,462 915 Working capital (861) (388) Interest and tax (413) (243) Other items 27 14 Net cash provided by operating activities of continuing operations 21
Slide 15: Balance sheet and capital allocation
2021/22 Second Quarter and Half Year Results Presentation Balance sheet and capital allocation • Net debt to adjusted EBITDA 0.8x* • Target range of net debt to adjusted EBITDA of 1-2x • Capital allocation priorities unchanged: 1. Invest in above market organic growth • Product breadth and depth • G
Slide 16: Closing and outlook
Closing and outlook 3 Kevin Murphy, Group Chief Executive Ferguson plc | 2021/22 Second Quarter and Half Year Results Presentation | March 15, 2022 16
Slide 17: Closing and Outlook
2021/22 Second Quarter and Half Year Results Presentation Closing and Outlook • Markets remain supportive and we anticipate solid revenue growth in the second half as we begin to lap tougher comparatives • We continue to be mindful that first half tailwinds on gross margin will likely moderate • We
Slide 18: Q&A
# FERGUSON Q&A
Slide 19: Appendix
Appendix 4 Ferguson plc | 2021/22 Second Quarter and Half Year Results Presentation | March 15, 2022 19
Slide 20: Technical guidance for the full year to July 31, 2022
Section Second 2021/22 heading Quarter and Half Year Results Presentation Technical guidance for the full year to July 31, 2022 Full year FY22 impact from completed acquisitions Approx. $350m of revenue Same number of trading days in FY22 vs. FY21 - Interest expense Approx. $100m* Adjusted effective
Slide 21: Branch numbers and headcount
Section Second 2021/22 heading Quarter and Half Year Results Presentation Branch numbers and headcount Branch numbers Headcount1 Brought Carried Net joiners / Brought Carried forward Acquired forward Net opened / (leavers) forward Acquired forward July 31, 2021 Jan 31, 2022 (closed) July 31, 2021 Ja
Slide 22: Tax reconciliations
2021/22 Second Quarter and Half Year Results Presentation Tax reconciliations Reconciliation of Income before income tax to Adjusted pre-tax net income $m H1 2022 H1 2021 Income before income tax 1,243 720 Non-GAAP Adjustments1 7 5 Amortization of acquired intangibles 54 60 Adjusted pre-tax net inco