Travis Perkins has released a trading update highlighting its performance for the third quarter of 2021.
The positive trading momentum experienced by the company in the first half of the year 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. Total sales growth compared to 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 while the specialist businesses continue to see strengthening end market demand.
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. Demand from the core trade customer base remains very robust. The business is in excellent shape with total UK sales some 45% ahead of the third quarter of 2019. In Europe, the rollout of new branches is on track and the business continues to attract new trade customers.
The report notest that 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).
Given this robust 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 £340 million (including around £40 million 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.”