Ferguson Enterprises Inc. · NYSE:FERG
Ferguson Enterprises — Q1 FY2021 Earnings Presentation
15 slides from Ferguson Enterprises's earnings presentation, Dec 8, 2020
Slide 1: First quarter results update
2020/21 First quarter results update Three months to October 31, 2020
Slide 2: Introduction
Introduction Kevin Murphy, Group Chief Executive Ferguson plc | 2020/21 Q1 | December 8, 2020 2
Slide 3: Highlights
2020/21 first quarter results Highlights • Focused on the safety of our associates and supporting our customers • Sincere thanks to all of our 33,000 associates for their dedication and commitment • Strong Q1 demonstrating our resilient business model • Grew Group revenue 3.1% and underlying trading
Slide 4: Operating and financial review
Operating and financial review Bill Brundage, Group CFO Ferguson plc | 2020/21 Q1 | December 8, 2020 4
Slide 5: Quarterly ongoing financial results (Q1 2021)
2020/21 first quarter results Quarterly ongoing financial results (Q1 2021) Revenue ($m) Gross margin Operating expenses Underlying trading profit ($m) 5,372 29.6% 29.7% 1,113 5,208 486 1,106 433 2020/21 2019/20 2020/21 2019/20 2020/21 2019/20 2020/21 2019/20 +3.1% (0.1%) 0.6% +12.2% improvement Res
Slide 6: USA
Section first 2020/21 heading quarter results USA $m Q1 2021 Q1 2020 Change Revenue 5,050 4,893 +3.2% Organic revenue growth +3.3% +3.1% Underlying trading profit ¹ 473 425 +11.3% Underlying trading margin % ¹ 9.4% 8.7% +0.7% • Returned to revenue growth in first quarter • Gross margins slightly sof
Slide 7: Canada
Section first 2020/21 heading quarter results Canada $m Q1 2021 Q1 2020 Change Revenue 322 315 +2.2% Organic revenue growth +3.5% (6.4%) Underlying trading profit ¹ 23 19 +21.1% Underlying trading margin % ¹ 7.1% 6.0% +1.1% • Good revenue growth, markets remain challenging in Western Canada • Gross
Slide 8: UK (non-ongoing)
Section first 2020/21 heading quarter results UK (non-ongoing) $m Q1 2021 Q1 2020 Change Revenue 569 541 +5.2% Organic revenue growth +1.2% (4.2%) Underlying trading profit 1 25 15 +66.7% Underlying trading margin % 1 4.4% 2.8% +1.6% • Material uplift in underlying trading profit from benefits of op
Slide 9: Cash flow and balance sheet
2020/21 first quarter results Cash flow and balance sheet • Robust profit growth led to excellent cash generation in period • Pro forma net debt to adjusted EBITDA 0.7x after $467m cash outflow from final dividend • Target range of net debt to adjusted EBITDA of 1-2x • Capital allocation priorities
Slide 10: Operational review
Operational review Kevin Murphy, Group Chief Executive Ferguson plc | 2020/21 Q1 | December 8, 2020 10
Slide 11: US current trading
2020/21 first quarter results US current trading • Residential customer groups strong across new and RMI • Strong HVAC growth supported by pick-up in repair and remodel work in residential • Non residential customer groups (particularly Commercial and Industrial) remain challenging • Waterworks cont
Slide 12: Market update: US end market revenue growth
2020/21 first quarter results Market update: US end market revenue growth % US revenue1 Q1 end market growth Residential 54% ‘High single digit growth’ Commercial 32% ‘Mid single digit decline’ Civil/infrastructure 7% ‘Low single digit decline’ Industrial 7% ‘High teens decline’ Overall US markets w
Slide 13: Bolt on M&A
2020/21 first quarter results Bolt on M&A Old Dominion Supply (HVAC) • Wholesale distributor of HVAC parts to residential and commercial contractors • Serving Washington DC, Central Maryland, Northern Virginia • Revenue of $55m with two locations and 42 associates • Brings strong customer relationsh
Slide 14: Closing and Outlook
2020/21 first quarter results Closing and Outlook • Since the start of Q2 business has continued to generate low single digit revenue growth in broadly flat markets • We remain cautious on the outlook, considering current pandemic trends • Despite potential headwinds the business is in very good sha
Slide 15: Ferguson
FERGUSON