REG-Travis Perkins Travis Perkins plc - Q3 2021 trading update

Travis PerkinsAnnouncement

28/10/2021 07:05

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Travis Perkins (TPK)
Travis Perkins plc - Q3 2021 trading update

28-Oct-2021 / 07:00 GMT/BST
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The issuer is solely responsible for the content of this announcement.

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 "Dissemination of a Regulatory Announcement that contains inside information in accordance with
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                                         28 October 2021

 

                           Travis Perkins plc - Q3 2021 trading update

                                                 

             Continued positive trading momentum; increasing 2021 earnings guidance

                                                 

Highlights

 

  • Positive trading momentum has continued with like-for-like sales growth of 13.1% (13.3% on  a
    two year like-for-like basis)
  • The Merchanting business delivered like-for-like sales growth  of 15.3% (11.8% on a two  year
    like-for-like basis) with end market demand remaining robust, notably in RMI
  • Toolstation grew by 1.4% on  a like-for-like sales basis  (25.2% on a two-year  like-for-like
    basis) in  Q3 as  customer mix  normalised following  exceptional demand  from DIY  customers
    during 2020
  • Given robust underlying performance, the Board now expects that adjusted operating profit for
    the full year 2021 will be ahead of  current market expectations* and will be at least  £340m
    (inclusive of around £40m of property profits)

 

Nick Roberts, Chief Executive, commented:

"The  Group  has  delivered  a  strong  performance  in  the  third  quarter  and  is  navigating
well-documented supply  chain and  cost  inflation challenges  very  capably. End  market  demand
remains robust and we are confident that we are in a strong position to deliver future growth.

 

As outlined at our Investor Update in September, the focus of the Group is to enhance our  market
leading propositions to win share and to provide new value added services to our customers as the
construction process evolves to improve quality, drive efficiency and reduce carbon and waste."

 

*Market expectations defined as company compiled analyst  consensus. This stood at £316m at  time
of          publication           and           can          be           reviewed           via:
https://www.travisperkinsplc.co.uk/investors/analyst-consensus

 

Q3 2021 sales growth       Merchanting Toolstation Group
Like-for-like sales growth    15.3%       1.4%     13.1%
Net space change             (0.1)%       7.7%     1.1%
Business disposals              -           -        -
Trading days                    -           -        -
Total sales growth            15.2%       9.1%     14.2%
Two-year like-for-like        11.8%      25.2%**   13.3%

 

 

2021 YTD sales growth      Merchanting Toolstation Group
Like-for-like sales growth    34.3%       19.3%    31.7%
Net space change             (4.8)%       8.6%     (2.5)%
Business disposals              -           -        -
Trading days                 (0.6)%      (0.3)%    (0.5)%
Total sales growth            28.9%       27.6%    28.7%
Two-year like-for-like        11.3%      36.7%**   14.1%

 

**Excludes Toolstation Europe

 

Business performance

 

  • Overall Group  positive trading  momentum has  continued with  two year  like-for-like  sales
    growth of 13.3% in Q3, broadly in line with H1.
  • The Merchanting  business delivered  two-year  like-for-like sales  growth  of 11.8%  in  Q3,
    slightly ahead of H1. Total sales growth versus 2020 was in line with like-for-like sales  at
    15.2% as the  business has  now fully cycled  the June  2020 branch closure  programme. At  a
    business unit  level,  the  Travis  Perkins  General  Merchant  delivered  another  excellent
    performance whilst the specialist businesses continue to see strengthening end market demand.
  • In Toolstation, demand from the core trade  customer base remains very robust.  The  business
    is in excellent shape with total UK sales some 45% ahead of 2019 during the third quarter. In
    Europe, the rollout of  new branches is on  track and the business  continues to attract  new
    trade customers.
  • Industry wide  inflationary pressure,  driven by  heavyside manufacturer  and core  commodity
    price increases, has  accelerated in  the period  with price inflation  of around  11% in  Q3
    (compared to around 7% in Q2).
  • The Group  continues  to  benefit  from  its  extensive  supply  chain  and  strong  supplier
    relationships in order to maximise product availability to customers. Despite the  challenges
    presented, colleagues  across all  businesses  have worked  incredibly  hard to  ensure  that
    disruption to customer service has been minimal.

 

 

Group Chief Financial Officer Alan Williams will be hosting a call for analysts and investors  at
8.30am BST. Dial in details are available via the following link:

 1 https://www.travisperkinsplc.co.uk/sites/travis-perkins/files/investors/TPK-2021-Q3-Invite.pdf

 

Enquiries:

Travis Perkins                          Powerscourt
Matt Worster                            James White / Ngozi Emeagi
+44 (0) 7990 088548                     +44 (0) 207 2501446
matt.worster@travisperkins.co.uk        travisperkins@powerscourt-group.com
                                         
Heinrich Richter                         
+44 (0) 7392 125417                      
heinrich.richter2@travisperkins.co.uk
                                         
 

 

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   ISIN:           GB00BK9RKT01
   Category Code:  QRT
   TIDM:           TPK
   LEI Code:       2138001I27OUBAF22K83
   OAM Categories: 3.1. Additional regulated information required to be
                   disclosed under the laws of a Member State
   Sequence No.:   125378
   EQS News ID:    1244150


    
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