Rising freight costs and other costs related to COVID-19 and Brexit continued
Electrocomponents PLC (LON: ECM) said it had a good start to the year, but industry supply constraints began to affect growth as the second quarter approached.
The electronics distributor reported 37% year-on-year revenue growth in the quarter ended June 30, while noting that sales were up 22% from two years ago .
He added that he remained “on track” to generate double-digit like-for-like revenue growth in mid-teens for the full year, which should help margins. operating beneficiaries to return to levels of two years ago.
Managing Director Lindsley Ruth said the strong first quarter performance was “driven by continued market share gains as our offering continues to resonate with our customers, an improved market environment and weaker comparisons. “.
He added, “We expect industry supply chain constraints to reduce both product availability and customer demand for the rest of the year, thus slowing revenue growth. business, although we still plan to provide at least twice the growth of the industry. “
The FTSE 250-listed group said the rise in freight and other costs related to COVID-19 and Brexit seen over the past fiscal year continued.
Cash generation remains “strong”, he added, which he will use to invest in future growth.