Electrocomponents Q1 revenues grow on strong performance in key markets

Industrial and electronics products distributor Electrocomponents reported strong first-quarter revenue growth on Thursday, with the firm seeing market share gains in all key geographies.

Electrocomponents said like-for-like first-quarter revenue growth was 37%, with acquisitions contributing a further 7% but foreign exchange headwinds taking away 6%, while additional trading days added 1% to give the group total revenue growth of 39% for the three months ended 30 June.

Revenues were up 37% in Europe, the Middle East and Africa, 40% in the Americas, and 31% in the Asia Pacific region.

The FTSE 250-listed firm stated that its full-year gross margin was expected to be broadly flat, with higher costs related to Covid-19 and Brexit continuing to impact the group in the current year.

Chief executive Lindsley Ruth said: "Electrocomponents has delivered a very strong trading performance across all regions during Q1 due to ongoing market share gains as our offer continues to resonate with our customers, an improved market backdrop and weaker comparatives.

"We expect industry supply chain constraints to reduce both product availability and customer demand into the balance of the year, thereby slowing top-line growth, albeit we expect to still deliver at least twice the industry growth."

As of 0850 BST, Electrocomponents shares were down 0.83% at 1,071.0p.