(Sharecast News) - RS Group shares fell on Wednesday even as the distributor said it expected annual adjusted operating profit to be slightly ahead of estimates after a 1% rise in fourth-quarter like-for-like revenue despite weak electronics sales.
The electronics product distributor, formerly known as Electrocomponents, added that full year revenue would be in line with consensus and was well positioned to face the more difficult market environment.
Consensus estimates for the year to March are for revenue of £2.98bn in a range of £2.86 - 3.07bn, adjusted operating profit of £382m within a range of £375 - 386.2m and adjusted pre-tax profit of £373m in a range of £368.5 - 376.8m.
The company said its industrial product ranges, which make up 77% of group revenue, grew like-for-like sales by 10% in the final quarter, while electronic products fell 14%.
"EMEA continues to outperform against tough comparatives with volume growth in our industrial ranges offsetting weaker electronics products. This reflects our more solutions-led and specialist product offer and service," RS Group said
Americas slowed in the period against very strong comparatives combined with a softer market, customer destocking and some rebranding disruption, while Asia Pacific continued to be impacted by a greater exposure to electronics and single-board computing, geopolitical issues in China and the hit from Covid-19 lockdowns.
"However, we continue to manage our costs appropriately as we invest and refocus our offer towards the industrial market and solutions," the company added.
Reporting by Frank Prenesti for Sharecast.com
RS Group (RS1)