Sales growth continues at Travis Perkins in Q3 as inflation accelerates
A trading update for Q3 from Travis Perkins plc has confirmed that positive trading momentum has continued with like-for-like sales growth of 13.1% (13.3% on a two year like-for-like basis). It warned about rising prices 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).
Nick Roberts, Travis Perkins chief executive, said: “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.
“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.”
The Group’s Merchanting business experienced robust demand, notably in RMI, delivered like-for-and was able to deliver like sales growth of 15.3% (11.8% on a two year like-for-like basis).
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
Given robust underlying performance, Travis Perkins now expects that adjusted operating profit for the full year 2021 to improve to at least £340m, benefiting from around £40m of property profits.
