REG-Ferguson plc Ferguson Reports Second Quarter Results
05/03/2024 11:45
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Ferguson Reports Second Quarter Results
Continued Execution with Full Year Guidance Unchanged
Second quarter highlights
* Sales decline of 2.2%, largely driven by deflation of approximately 2%.
* Operating margin of 7.1% (7.8% on an adjusted basis) in our seasonally
lightest quarter with fiscal year to date operating margin of 8.5% (9.0% on an
adjusted basis).
* Diluted earnings per share of $1.58 ($1.74 on an adjusted basis).
* Operating cash flow of $863 million on a fiscal year to date basis.
* Declared quarterly dividend of $0.79, reflecting a 5% increase over the prior
year.
* Completed two acquisitions during the quarter and one subsequent to the
quarter with aggregate annualized revenues of approximately $220 million.
* Share repurchases of $142 million during the quarter.
* Balance sheet remains strong with net debt to adjusted EBITDA of 1.1x.
Ferguson plc (NYSE:FERG) (LSE:FERG):
FY2024 Guidance (unchanged)
Total Company 2024 Guidance
Net sales* Broadly flat
Adjusted operating margin** 9.2% - 9.8%
Interest expense $190 - $210 million
Adjusted effective tax rate** Approximately 25%
Capital expenditures $400 - $450 million
* Net sales guidance assumes mid-single digit market decline with continued
Company market outperformance, contribution from completed acquisitions and
one additional sales day. Overall impact of price inflation estimated to be
broadly neutral for the year.
** The Company does not reconcile forward-looking non-GAAP measures. See
“Non-GAAP Reconciliations and Supplementary information.”
Kevin Murphy, Ferguson CEO, commented, “Our associates continued to execute
well during our seasonally lightest quarter. While sales were slightly lower
than the prior year, organic performance improved from the first quarter.
Current open orders and sales per day trends support our expectation of
improvement through the balance of the fiscal year against easing comparables.
We are appropriately managing costs as we prepare for our seasonally stronger
second half. We delivered strong operating cash flow during the first half of
our fiscal year and our strong balance sheet positions us for continued
investment in organic growth, sustainable dividend growth, consolidation of
our fragmented markets through acquisitions and the continued return of
capital to shareholders.
“Our FY2024 financial guidance is unchanged. We are well positioned to
leverage emerging multi-year structural tailwinds in non-residential
construction and opportunities to further support the residential trade
professional.”
Three months ended January 31,
US$ (In millions, except per share amounts) 2024 2023 Change
Reported Adjusted((1)) Reported Adjusted((1)) Reported Adjusted
Net sales 6,673 6,673 6,825 6,825 (2.2)% (2.2)%
Gross margin 30.4% 30.4% 30.2% 30.2% +20 bps +20 bps
Operating profit 477 520 549 582 (13.1)% (10.7)%
Operating margin 7.1% 7.8% 8.0% 8.5% (90) bps (70) bps
Earnings per share - diluted 1.58 1.74 1.80 1.91 (12.2)% (8.9)%
Adjusted EBITDA 568 630 (9.8)%
Net debt((1)) : Adjusted EBITDA 1.1x 1.1x
Six months ended January 31,
US$ (In millions, except per share amounts) 2024 2023 Change
Reported Adjusted((1)) Reported Adjusted((1)) Reported Adjusted
Net sales 14,381 14,381 14,756 14,756 (2.5)% (2.5)%
Gross margin 30.3% 30.3% 30.4% 30.4% (10) bps (10) bps
Operating profit 1,216 1,293 1,380 1,446 (11.9)% (10.6)%
Operating margin 8.5% 9.0% 9.4% 9.8% (90) bps (80) bps
Earnings per share - diluted 4.12 4.40 4.64 4.87 (11.2)% (9.7)%
Adjusted EBITDA 1,387 1,542 (10.1)%
Net debt((1)) : Adjusted EBITDA 1.1x 1.1x
((1)) The Company uses certain non-GAAP measures, which are not defined or
specified under U.S. GAAP. See the section titled “Non-GAAP Reconciliations
and Supplementary Information.”
Summary of financial results
Second quarter
Net sales of $6.7 billion were 2.2% below last year against a strong prior
year comparable. Organic revenue declined 3.7% driven by a decline in
residential sales with a smaller decline in non-residential sales. These
declines were partially offset by acquisition contributions of 1.5%. As
expected, weakness in certain commodity related categories drove modest
overall price deflation of approximately 2% as we continued to lap strong
inflation comparables.
Gross margin of 30.4% was 20 basis points higher than last year driven by
strong pricing execution from our associates. Operating expenses were
appropriately managed with targeted cost control actions and productivity
initiatives balanced with investing in core capabilities for future growth.
Reported operating profit was $477 million (7.1% operating margin), 13.1%
lower than last year. Adjusted operating profit of $520 million (7.8% adjusted
operating margin) was 10.7% lower than last year.
Reported diluted earnings per share was $1.58 (Q2 2023: $1.80), a decrease of
12.2%, and adjusted diluted earnings per share of $1.74 decreased 8.9% due to
lower adjusted operating profit, partially offset by the impact of share
repurchases.
USA - second quarter
Net sales in the US business declined 2.2%, with an organic revenue decline of
3.7% partially offset by a 1.5% contribution from acquisitions.
Residential end markets, which comprise just over half of US revenue, remained
subdued. New residential housing start and permit activity improved slightly
in the quarter, while repair, maintenance and improvement (“RMI”) work
remained soft. Overall, residential revenue declined by approximately 4% in
the second quarter.
Non-residential end markets, representing just under half of US revenue,
showed comparative resilience with non-residential revenues declining by
approximately 1% in the second quarter. Commercial and civil/infrastructure
activity held flat in the quarter with industrial more pressured against a
strong prior year comparable. We continued to see good levels of megaproject
related bid activity.
Adjusted operating profit of $525 million was 9.3% or $54 million behind last
year.
We completed two acquisitions during the quarter, Grove Supply, Inc., a 17
location plumbing and HVAC distributor serving customers in Pennsylvania and
New Jersey, and Harway Appliances, a premier distributor of high-end kitchen
appliances in Texas.
Canada - second quarter
Net sales compressed by 3.7%, with an organic revenue decline of 3.3% and a
0.4% adverse impact from foreign exchange rates. Markets have remained
challenging and saw similar trends to that of the United States. Adjusted
operating profit of $9 million declined by $5 million compared to last year.
Subsequent to the quarter we acquired Yorkwest Plumbing Supply Inc., a leading
distributor of plumbing, municipal, hydronics, institutional, HVAC and
industrial products in the greater Toronto area.
Segment overview
Three months ended January 31, Six months ended January 31,
US$ (In millions) 2024 2023 Change 2024 2023 Change
Net sales:
USA 6,364 6,504 (2.2)% 13,693 14,036 (2.4)%
Canada 309 321 (3.7)% 688 720 (4.4)%
Total net sales 6,673 6,825 (2.2)% 14,381 14,756 (2.5)%
Adjusted operating profit:
USA 525 579 (9.3)% 1,291 1,424 (9.3)%
Canada 9 14 (35.7)% 32 47 (31.9)%
Central and other costs (14) (11) (30) (25)
Total adjusted operating profit 520 582 (10.7)% 1,293 1,446 (10.6)%
Financial position
Net debt to adjusted EBITDA at January 31, 2024 was 1.1x and during the
quarter we completed share repurchases of $142 million.
We declared a quarterly dividend of $0.79, reflecting a 5% increase over the
prior year. The dividend will be paid on May 7, 2024 to shareholders on the
register as of March 15, 2024.
There have been no other significant changes to the financial position of the
Company.
Domiciling our ultimate parent company in the United States
On January 18, 2024, the Company’s Board of Directors (the “Board”)
announced that it would be in the best interests of the Company and its
shareholders as a whole to proceed with establishing a new corporate structure
to domicile our ultimate parent company in the United States. This step better
aligns the Company’s headquarters and governance with its operations and
leadership.
The Company expects the change to be effective on or about August 1, 2024,
subject to the satisfaction of the conditions to the completion of the
transaction, including shareholder approval.
No action is needed by shareholders at this time.
Investor conference call and webcast
A call with Kevin Murphy, CEO and Bill Brundage, CFO will commence at 8:30
a.m. ET (1:30 p.m. GMT) today. The call will be recorded and available on our
website after the event at corporate.ferguson.com
(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fcorporate.ferguson.com%2Fhome%2Fdefault.aspx&esheet=53905063&newsitemid=20240305365031&lan=en-US&anchor=corporate.ferguson.com&index=1&md5=e58c34efd5e35ca640fd802c5aebf00e)
.
Dial in number US: +1 646 787 9445
UK: +44 (0) 20 3936 2999
Ask for the Ferguson call quoting 422862. To access the call via your laptop,
tablet or mobile device please go to corporate.ferguson.com. If you have
technical difficulties, please click the “Listen by Phone” button on the
webcast player and dial the number provided.
About us
Ferguson plc (NYSE: FERG; LSE: FERG) is a leading value-added distributor in
North America providing expertise, solutions and products from infrastructure,
plumbing and appliances to HVAC, fire, fabrication and more. We exist to make
our customers’ complex projects simple, successful and sustainable. Ferguson
is headquartered in the U.K., with its operations and associates solely
focused on North America and managed from Newport News, Virginia. For more
information, please visit corporate.ferguson.com
(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fcorporate.ferguson.com%2Fhome%2Fdefault.aspx&esheet=53905063&newsitemid=20240305365031&lan=en-US&anchor=corporate.ferguson.com&index=2&md5=a61a70bc25b25b1e2220148870e63787)
or follow us on LinkedIn linkedin.com/company/ferguson-enterprises.
Analyst resources
For further information on quarterly financial breakdowns, visit
corporate.ferguson.com on the Investors menu under Analyst Consensus and
Resources.
Provisional financial calendar
Q3 Results for period ending April 30, 2024 June 4, 2024 with call from 8:30 a.m. ET
Timetable for the quarterly dividend
The timetable for payment of the quarterly dividend of $0.79 per share is as
follows:
Ex-dividend date: March 14, 2024
Record date: March 15, 2024
Payment date: May 7, 2024
The quarterly dividend is declared in U.S. dollars and since March 2021, the
default currency for dividends is also U.S. dollars. Those shareholders who
have not elected to receive the dividend in pounds sterling and who would like
to make such an election may do so online by going to Computershare's Investor
Center and returning the completed form to the address located in the
upper‐right corner of the form. The deadline to elect to receive the
quarterly dividend in pounds sterling, or to amend an existing election, is
5:00 p.m. ET on April 8, 2024 and any requests should be made in good time
ahead of that date.
The form is available at www-us.computershare.com/Investor/#Home and
navigating to Company Info > FERG > GBP Dividend Election and Mandate
Form.
The completion of cross-border movements of shares between the U.K. and the
U.S. is contingent upon the receiving broker identifying and acknowledging any
such movements. Where a cross-border movement of shares has been initiated but
not completed by the relevant dividend record date (being March 15, 2024 for
this quarterly dividend), there is a risk that the dividend in respect of such
shares will not be received on the dividend payment date. Accordingly,
shareholders are advised not to initiate any cross-border movements of shares
during the period from March 14, 2024 through March 18, 2024 inclusive.
Cautionary note on forward-looking statements
Certain information included in this announcement is forward-looking,
including within the meaning of the Private Securities Litigation Reform Act
of 1995, and involves risks, assumptions and uncertainties that could cause
actual results to differ materially from those expressed or implied by
forward-looking statements. Forward-looking statements cover all matters which
are not historical facts and include, without limitation, statements or
guidance regarding or relating to our future financial position, results of
operations and growth, projected interest in and ownership of our ordinary
shares by investors including as a result of inclusion in North American
market indices, plans and objectives for the future including our capabilities
and priorities, domiciling our ultimate parent company in the United States,
risks associated with changes in global and regional economic, market and
political conditions, ability to manage supply chain challenges, ability to
manage the impact of product price fluctuations, our financial condition and
liquidity, legal or regulatory changes and other statements concerning the
success of our business and strategies. Forward-looking statements can be
identified by the use of forward-looking terminology, including terms such as
“believes,” “estimates,” “anticipates,” “expects,”
“forecasts,” “guidance,” “intends,” “continues,” “plans,”
“projects,” “goal,” “target,” “aim,” “may,” “will,”
“would,” “could” or “should” or, in each case, their negative or
other variations or comparable terminology and other similar references to
future periods. Forward-looking statements speak only as of the date on which
they are made. They are not assurances of future performance and are based
only on our current beliefs, expectations and assumptions regarding the future
of our business, future plans and strategies, projections, anticipated events
and trends, the economy and other future conditions. Therefore, you should not
place undue reliance on any of these forward-looking statements. Although we
believe that the forward-looking statements contained in this announcement are
based on reasonable assumptions, you should be aware that many factors could
cause actual results to differ materially from those in such forward-looking
statements, including but not limited to: the transaction relating to
domiciling our ultimate parent company in the United States may be delayed,
cancelled, suspended or terminated; unexpected costs for us and any
unanticipated or other adverse consequences to us or our shareholders relating
to domiciling our ultimate parent company in the United States; weakness in
the economy, market trends, uncertainty and other conditions in the markets in
which we operate, and other factors beyond our control, including disruption
in the financial markets and any macroeconomic or other consequences of
political unrest, disputes or war; failure to rapidly identify or effectively
respond to direct and/or end customers’ wants, expectations or trends,
including costs and potential problems associated with new or upgraded
information technology systems or our ability to timely deploy new
omni-channel capabilities; decreased demand for our products as a result of
operating in highly competitive industries and the impact of declines in the
residential and non‐residential markets, as well as the RMI and new
construction markets; changes in competition, including as a result of market
consolidation or competitors responding more quickly to emerging technologies
(such as generative artificial intelligence (“AI”)); failure of a key
information technology system or process as well as exposure to fraud or theft
resulting from payment‐related risks; privacy and protection of sensitive
data failures, including failures due to data corruption, cybersecurity
incidents or network security breaches; ineffectiveness of or disruption in
our domestic or international supply chain or our fulfillment network,
including delays in inventory availability at our distribution facilities and
branches, increased delivery costs or lack of availability; failure to
effectively manage and protect our facilities and inventory or to prevent
personal injury to customers, suppliers or associates, including as a result
of workplace violence; unsuccessful execution of our operational strategies;
failure to attract, retain and motivate key associates; exposure of
associates, contractors, customers, suppliers and other individuals to health
and safety risks; inherent risks associated with acquisitions, partnerships,
joint ventures and other business combinations, dispositions or strategic
transactions; regulatory, product liability and reputational risks and the
failure to achieve and maintain a high level of product and service quality;
inability to renew leases on favorable terms or at all, as well as any
remaining obligations under a lease when we close a facility; changes in,
interpretations of, or compliance with tax laws in the United States, the
United Kingdom, Switzerland or Canada; our indebtedness and changes in our
credit ratings and outlook; fluctuations in product prices (e.g.,
commodity-priced materials, inflation/deflation) and foreign currency; funding
risks related to our defined benefit pension plans; legal proceedings as well
as failure to comply with domestic and foreign laws, regulations and
standards, as those laws, regulations and standards or interpretations and
enforcement thereof may change, or the occurrence of unforeseen developments
such as litigation; our failure to comply with the obligations associated with
being a U.S. domestic issuer and the costs associated therewith; the costs and
risk exposure relating to environmental, social and governance (“ESG”)
matters, including sustainability issues, regulatory or legal requirements,
and disparate stakeholder expectations; adverse impacts caused by a public
health crisis; and other risks and uncertainties set forth under the heading
“Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended
July 31, 2023 as filed with the SEC on September 26, 2023, and in other
filings we make with the SEC in the future.
Additionally, forward-looking statements regarding past trends or activities
should not be taken as a representation that such trends or activities will
continue in the future. Other than in accordance with our legal or regulatory
obligations, we undertake no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information, future
events or otherwise.
Ferguson plc
Non-GAAP Reconciliations and Supplementary Information
(unaudited)
Non-GAAP items
This announcement contains certain financial information that is not presented
in conformity with U.S. GAAP. These non-GAAP financial measures include
adjusted operating profit, adjusted operating margin, adjusted net income,
adjusted earnings per share - diluted, adjusted EBITDA, adjusted effective tax
rate, net debt and net debt to adjusted EBITDA ratio. The Company believes
that these non-GAAP financial measures provide users of the Company’s
financial information with additional meaningful information to assist in
understanding financial results and assessing the Company’s performance from
period to period. Management believes these measures are important indicators
of operations because they exclude items that may not be indicative of our
core operating results and provide a better baseline for analyzing trends in
our underlying businesses, and they are consistent with how business
performance is planned, reported and assessed internally by management and the
Board. Such non-GAAP adjustments include amortization of acquired intangible
assets, discrete tax items, and any other items that are non-recurring.
Non-recurring items may include various restructuring charges, gains or losses
on the disposals of businesses which by their nature do not reflect primary
operations, as well as certain other items deemed non-recurring in nature
and/or that are not a result of the Company’s primary operations. Because
non-GAAP financial measures are not standardized, it may not be possible to
compare these financial measures with other companies' non-GAAP financial
measures having the same or similar names. These non-GAAP financial measures
should not be considered in isolation or as a substitute for results reported
under U.S. GAAP. These non-GAAP financial measures reflect an additional way
of viewing aspects of operations that, when viewed with U.S. GAAP results,
provide a more complete understanding of the business. The Company strongly
encourages investors and shareholders to review the Company’s financial
statements and publicly filed reports in their entirety and not to rely on any
single financial measure.
The Company does not provide a reconciliation of forward-looking non-GAAP
financial measures to the most directly comparable U.S. GAAP financial
measures on a forward-looking basis because it is unable to predict with
reasonable certainty or without unreasonable effort non-recurring items, such
as those described above, that may arise in the future. The variability of
these items is unpredictable and may have a significant impact.
Summary of Organic Revenue
Management evaluates organic revenue as it provides a consistent measure of
the change in revenue year-on-year. Organic revenue growth (or decline) is
determined as the growth (or decline) in total reported revenue excluding the
growth (or decline) attributable to currency exchange rate fluctuations, sales
days, acquisitions and disposals, divided by the preceding financial year’s
revenue at the current year’s exchange rates.
A summary of the Company’s historical revenue and organic revenue growth is
below:
Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023
Revenue Organic Revenue Organic Revenue Organic Revenue Organic Revenue Organic
Revenue
Revenue
Revenue
Revenue
Revenue
USA (2.2)% (3.7)% (2.7)% (5.0)% (1.5)% (5.5)% (1.6)% (2.5)% 5.4% 2.6%
Canada (3.7)% (3.3)% (5.0)% (3.3)% (5.1)% (2.7)% (9.5)% (1.5)% (4.5)% 3.0%
Continuing operations (2.2)% (3.7)% (2.8)% (4.9)% (1.7)% (5.3)% (2.0)% (2.5)% 4.9% 2.7%
For further details regarding organic revenue growth, visit
corporate.ferguson.com on the Investors menu under Analyst Consensus and
Resources.
Reconciliation of Net Income to Adjusted Operating Profit and Adjusted EBITDA
Three months ended Six months ended
January 31, January 31,
(In millions) 2024 2023 2024 2023
Net income $322 $374 $841 $969
Provision for income taxes 111 121 283 318
Interest expense, net 44 47 89 88
Other expense (income), net — 7 3 5
Operating profit 477 549 1,216 1,380
Corporate restructurings((1)) 8 — 8 —
Amortization of acquired intangibles 35 33 69 66
Adjusted Operating Profit 520 582 1,293 1,446
Depreciation & impairment of PP&E 41 36 80 73
Amortization of non-acquired intangibles 7 12 14 23
Adjusted EBITDA $568 $630 $1,387 $1,542
(1) For the three and six months ended January 31, 2024, corporate
restructuring costs related to incremental costs in connection with
establishing a new corporate structure to domicile our ultimate parent company
in the United States.
Net Debt : Adjusted EBITDA Reconciliation
To assess the appropriateness of its capital structure, the Company’s
principal measure of financial leverage is net debt to adjusted EBITDA. The
Company aims to operate with investment grade credit metrics and keep this
ratio within one to two times.
Net debt
Net debt comprises bank overdrafts, bank and other loans and derivative
financial instruments, excluding lease liabilities, less cash and cash
equivalents. Long-term debt is presented net of debt issuance costs.
As of January 31,
(In millions) 2024 2023
Long-term debt $3,595 $3,936
Short-term debt 150 55
Bank overdrafts((1)) 23 36
Derivative liabilities 11 17
Cash and cash equivalents (639) (597)
Net debt $3,140 $3,447
(1) Bank overdrafts are included in other current liabilities in the
Company’s Consolidated Balance Sheet.
Adjusted EBITDA (Rolling 12-month)
Adjusted EBITDA is net income before charges/credits relating to depreciation,
amortization, impairment and certain non-GAAP adjustments. A rolling 12-month
adjusted EBITDA is used in the net debt to adjusted EBITDA ratio to assess the
appropriateness of the Company’s financial leverage.
Twelve months ended
(In millions, except ratios) January 31,
2024 2023
Net income $1,761 $2,095
Loss from discontinued operations (net of tax) — 2
Provision for income taxes 540 655
Interest expense, net 185 150
Other expense (income), net 9 4
Corporate restructurings((1)) 8 10
Impairments and other charges((2)) 125 —
Depreciation and amortization 322 317
Adjusted EBITDA $2,950 $3,233
Net Debt: Adjusted EBITDA 1.1x 1.1x
(1) For the rolling twelve months ended January 31, 2024, corporate
restructuring costs related to incremental costs in connection with
establishing a new corporate structure to domicile our ultimate parent company
in the United States. For the rolling twelve months ended January 31, 2023,
corporate restructuring costs primarily related to incremental costs in
connection with the Company’s listing in the United States.
(2) For the rolling twelve months ended January 31, 2024, impairments and
other charges related to $107 million in software impairment charges in the
United States, as well as $18 million in charges associated with the closure
of certain smaller, underperforming branches in the United States. Such
amounts were mainly recorded in the third quarter of fiscal year 2023.
Reconciliation of Net Income to Adjusted Net Income and Adjusted EPS - Diluted
Three months ended
January 31,
(In millions, except per share amounts) 2024 2023
per share((1)) per share((1))
Net income $322 $1.58 $374 $1.80
Corporate restructurings((2)) 8 0.04 — —
Amortization of acquired intangibles 35 0.17 33 0.16
Discrete tax adjustments((3)) (2) (0.01) (3) (0.01)
Tax impact-non-GAAP adjustments((4)) (8) (0.04) (8) (0.04)
Adjusted net income $355 $1.74 $396 $1.91
Diluted weighted-average shares outstanding 203.9 207.8
Six months ended
January 31,
(In millions, except per share amounts) 2024 2023
per share((1)) per share((1))
Net income $841 $4.12 $969 $4.64
Corporate restructurings((2)) 8 0.04 — —
Amortization of acquired intangibles 69 0.34 66 0.32
Discrete tax adjustments((3)) (2) (0.01) (3) (0.01)
Tax impact-non-GAAP adjustments((4)) (18) (0.09) (16) (0.08)
Adjusted net income $898 $4.40 $1,016 $4.87
Diluted weighted-average shares 204.2 208.8
(1) Per share on a dilutive basis.
(2) For the three and six months ended January 31, 2024, corporate
restructuring costs related to incremental costs in connection with
establishing a new corporate structure to domicile our ultimate parent company
in the United States.
(3) For the three and six months ended January 31, 2024, discrete tax
adjustments mainly related to the tax treatment of certain compensation items
that were not individually significant. For the three and six months ended
January 31, 2023, discrete tax items primarily related to adjustments in
connection with amended returns.
(4) For the three and six months ended January 31, 2024 and 2023, the tax
impact on non-GAAP adjustments primarily related to the amortization of
acquired intangibles.
Ferguson plc
Condensed Consolidated Statements of Earnings
(unaudited)
Three months ended Six months ended
January 31, January 31,
(In millions, except per share amounts) 2024 2023 2024 2023
Net sales $6,673 $6,825 $14,381 $14,756
Cost of sales (4,644) (4,763) (10,021) (10,273)
Gross profit 2,029 2,062 4,360 4,483
Selling, general and administrative expenses (1,469) (1,432) (2,981) (2,941)
Depreciation and amortization (83) (81) (163) (162)
Operating profit 477 549 1,216 1,380
Interest expense, net (44) (47) (89) (88)
Other expense, net — (7) (3) (5)
Income before income taxes 433 495 1,124 1,287
Provision for income taxes (111) (121) (283) (318)
Net income $322 $374 $841 $969
Earnings per share - Basic $1.58 $1.81 $4.13 $4.66
Earnings per share - Diluted $1.58 $1.80 $4.12 $4.64
Weighted average number of shares outstanding:
Basic 203.4 207.1 203.6 207.9
Diluted 203.9 207.8 204.2 208.8
Ferguson plc
Condensed Consolidated Balance Sheets
(unaudited)
As of
(In millions) January 31, 2024 July 31, 2023
Assets
Cash and cash equivalents $639 $601
Accounts receivable, net 3,092 3,597
Inventories 3,968 3,898
Prepaid and other current assets 891 953
Assets held for sale 26 28
Total current assets 8,616 9,077
Property, plant and equipment, net 1,675 1,595
Operating lease right-of-use assets 1,523 1,474
Deferred income taxes, net 300 300
Goodwill 2,264 2,241
Other non-current assets 1,309 1,307
Total assets $15,687 $15,994
Liabilities and shareholders’ equity
Accounts payable $2,985 $3,408
Other current liabilities 1,803 2,021
Total current liabilities 4,788 5,429
Long-term debt 3,595 3,711
Long-term portion of operating lease liabilities 1,165 1,126
Other long-term liabilities 721 691
Total liabilities 10,269 10,957
Total shareholders' equity 5,418 5,037
Total liabilities and shareholders' equity $15,687 $15,994
Ferguson plc
Condensed Consolidated Statements of Cash Flows
(unaudited)
(In millions) Six months ended
Jan
uar
y
31,
2024 2023
Cash flows from operating activities:
Net income $841 $969
Depreciation and amortization 163 162
Share-based compensation 24 27
(Increase) decrease in inventories (52) 237
Decrease in receivables and other assets 565 512
Decrease in accounts payable and other liabilities (626) (634)
Other operating activities (52) (98)
Net cash provided by operating activities of continuing operations 863 1,175
Net cash used in operating activities of discontinued operations — (4)
Net cash provided by operating activities 863 1,171
Cash flows from investing activities:
Purchase of businesses acquired, net of cash acquired (67) (179)
Capital expenditures (192) (242)
Other investing activities 28 (4)
Net cash used in investing activities (231) (425)
Cash flows from financing activities:
Purchase of treasury shares (250) (564)
Net change in debt and bank overdrafts (24) 74
Cash dividends (305) (403)
Other financing activities (18) (13)
Net cash used in financing activities (597) (906)
Change in cash, cash equivalents and restricted cash 35 (160)
Effects of exchange rate changes — 19
Cash, cash equivalents and restricted cash, beginning of period 669 785
Cash, cash equivalents and restricted cash, end of period $704 $644
For further information, please contact:
Investor relations
Brian Lantz, Vice President IR and Communications
Mobile: +1 224 285 2410
Pete Kennedy, Director of Investor Relations
Mobile: +1 757 603 0111
Media inquiries
Christine Dwyer, Senior Director of Communications and PR
Mobile: +1 757 469 5813
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