Travis Perkins consumer division posts increase in sales and profit
In the six months to 30 June, revenue at the division rose by 7.3% to £822 million while like-for-like sales increased by 4.7%,
Meanwhile, the division's adjusted operating profit climbed by 2.3% to £45 million.
Travis Perkins said the results were driven by Wickes “outperforming” a tough DIY market, and strong growth in Toolstation through network expansion and accelerating like-for-like sales in existing stores.
Across the wider Travis Perkins group, which includes plumbing and heating, general merchanting, and contracts divisions, revenue grew by 3.5% to £3.2 billion. Like-for-like sales were up 2.7%.
Adjusted operating profit was 2.1% lower at £190 million which the company attributed to a “challenging” plumbing and heating market and recent investments, including information systems.
John Carter, Travis Perkins chief executive, said: "We executed our plan well and delivered a solid overall performance in the first half of 2017 against a challenging market backdrop of pronounced input cost inflation and market volatility. The robust growth and outperformance in our contracts and consumer divisions build on strong customer propositions and successful investments in those businesses.
“In the first half of the year, the group made a conscious decision to recover input cost inflation selectively through disciplined pricing activity. Whilst this had some impact on trading volume, it enabled us to maintain group gross margins and positions the business well for the future.”
The company has also announced plans to transform its plumbing and heating division as it looks to stabilise performance and to create more options to maximise shareholder value.
Carter added: “Whilst we remain cautious on the macro-economic outlook for the second half, the group remains focused on executing the clear plans it has in place which will deliver strong cash generation and maximise returns."
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