Ferguson Enterprises Inc. · NYSE:FERG
Ferguson Enterprises — Q3 FY2022 Earnings Presentation
19 slides from Ferguson Enterprises's earnings presentation, Jun 14, 2022
Slide 1: Third Quarter Results Presentation
2021/22 Third Quarter Results Presentation Results to April 30, 2022
Slide 2: Cautionary note on Forward-Looking statements
2021/22 Third Quarter 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 meaning of the United
Slide 3: Highlights and introduction
Highlights and introduction 1 Kevin Murphy, CEO Ferguson plc | 2021/22 Third Quarter Results Presentation | June 14, 2022 3
Slide 4: Third quarter financial results
2021/22 Third Quarter Results Presentation Third quarter financial results Net sales ($m) Adjusted operating profit* ($m) Adjusted EPS – diluted* 7,284 747 $2.50 5,916 559 $1.78 2022 2021 2022 2021 2022 2021 +23.1% +33.6% +40.4% * This is a non-GAAP measure. See our earnings announcement dated June
Slide 5: Third quarter highlights
Section Third 2021/22 heading Quarter Results Presentation Third quarter highlights • Sales grew 23.1% on top of strong prior year comparables. • Adjusted operating margin* of 10.3% expanded by 90bps. • Completed four bolt-on acquisitions. • Share repurchases of $501m, with $918 million of our $2.0
Slide 6: M&A highlights
Section Third 2021/22 heading Quarter Results Presentation M&A highlights • Four bolt-ons during the quarter • Lighting Plus • Founders Kitchen & Bath • Adirondack Piping Solutions • AP Supply Co. • Three bolt-ons subsequent to the quarter end • Aaron & Company • Safe Step Canada and Pacific Northwe
Slide 7: Financial review
Financial review 2 Bill Brundage, CFO Ferguson plc | 2021/22 Third Quarter Results Presentation | June 14, 2022 7
Slide 8: Third quarter financial highlights
Section Third 2021/22 heading Quarter Results Presentation Third quarter financial highlights $m (except per share amounts) Q3 2022 Q3 2021 Change Net sales 7,284 5,916 +23.1% Gross margin 30.3% 30.9% (60)bps Adjusted operating profit* 747 559 +33.6% Adjusted operating margin* 10.3% 9.4% +90bps Adju
Slide 9: USA third quarter
Section Third 2021/22 heading Quarter Results Presentation USA third quarter $m Q3 2022 Q3 2021 Change Net sales 6,938 5,598 +23.9% Organic revenue growth +23.7% +20.1% Adjusted operating profit* 736 560 +31.4% Adjusted operating margin % 10.6% 10.0% +60bps • Continued market share gains and support
Slide 10: USA third quarter revenue growth
Section Third 2021/22 heading Quarter Results Presentation USA third quarter revenue growth Q3 2022 % of US Total Customer group revenue1 growth Residential Trade 20% +21% Residential Building and Remodel 14% +17% Residential Digital Commerce 10% +9% HVAC 11% +28% Commercial / Mechanical 14% +18% Wa
Slide 11: Canada third quarter
Section Third 2021/22 heading Quarter Results Presentation Canada third quarter $m Q3 2022 Q3 2021 Change Net sales 346 318 +8.8% Organic revenue growth +11.3% +35.2% Adjusted operating profit* 20 12 +66.7% Adjusted operating margin % 5.8% 3.8% +200bps • Good revenue growth against very strong compa
Slide 12: Year to date financial highlights
Section Third 2021/22 heading Quarter Results Presentation Year to date financial highlights $m (except per share amounts) 2022 2021 Change YTD YTD Net sales 20,595 16,225 +26.9% Gross margin 30.7% 30.3% +40bps Adjusted operating profit* 2,102 1,393 +50.9% Adjusted operating margin* 10.2% 8.6% +160b
Slide 13: Cash flow
Section Third 2021/22 heading Quarter Results Presentation Cash flow 2022 2021 $m YTD YTD Adjusted EBITDA from continuing operations* 2,257 1,517 Working capital (998) (435) Interest and tax (626) (385) Other items 48 65 Net cash provided by operating activities of continuing operations 681 762 Cape
Slide 14: Balance sheet and capital allocation
2021/22 Third Quarter 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 • Global supply ch
Slide 15: Closing and outlook
Closing and outlook 3 Kevin Murphy, Group Chief Executive Ferguson plc | 2021/22 Third Quarter Results Presentation | June 14, 2022 15
Slide 16: Closing and Outlook
2021/22 Third Quarter Results Presentation Closing and Outlook • Near term market demand remains supportive • Increased full year expectations for adjusted operating profit to $2.85 - $2.95 billion • Mindful of broader macro economic headwinds • Balanced business mix, agile business model and strong
Slide 17: Q&A
# FERGUSON Q&A
Slide 18: Appendix
Appendix 4 Ferguson plc | 2021/22 Third Quarter Results Presentation | June 14, 2022 18
Slide 19: Technical guidance for the full year to July 31, 2022
Section Third 2021/22 heading Quarter Results Presentation Technical guidance for the full year to July 31, 2022 Full year FY22 impact from completed acquisitions Approx. $400m of revenue Same number of trading days in FY22 vs. FY21 - Interest expense Approx. $110m Adjusted effective tax rate – FY22