UK's Norcros FY profit beats estimates, helped by Fibo acquisition

Norcros

Today 07:10

Overview
UK bathroom products supplier's FY revenue rose 10.6%, slightly missing analyst expectations
Adjusted EPS for FY beat analyst expectations, rising 7.2%
Company completed Fibo acquisition and exited South African tile manufacturing

Outlook
Norcros says group revenue in the two months to end-May was 3.1% higher on a constant currency like-for-like basis
Company sees market conditions likely to stay subdued, especially in new build sector; says mid-premium RMI sector more resilient
Norcros maintains FY27 expectations amid ongoing market uncertainty

Result Drivers
FIBO ACQUISITION - Revenue and profit growth driven by the acquisition of Fibo in Norway, which broadened scale and geographic reach, and was earnings accretive in its first year
MARKET SHARE GAINS - Organic revenue growth ahead of the market, supported by new product launches, cross-selling, and high service levels
EUROPEAN SEGMENT STRENGTH - Strong performance in core European markets, with improved like-for-like operating margins, offsetting softer results in South Africa

Company press release: ID:nRSK8463Ha

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
FY Revenue
Slight Miss*
GBP 393.40 mln
GBP 393.94 mln (7 Analysts)
FY Adjusted EPS
Beat
GBP 0.36
GBP 0.34 (7 Analysts)
FY Adjusted Operating Profit
Beat
GBP 48 mln
GBP 43.03 mln (7 Analysts)
FY Adjusted Pretax Profit
Beat
GBP 40.90 mln
GBP 40.24 mln (7 Analysts)
FY Adjusted Free Cash Flow
 
GBP 57.60 mln
 
FY Dividend
 
GBP 0.11
 
FY Operating Profit
 
GBP 22.20 mln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the construction supplies & fixtures peer group is "buy"
Wall Street's median 12-month price target for Norcros PLC is GBp410.00, about 55.9% above its June 10 closing price of GBp263.00
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 9 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)