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Electronics Production | December 09, 2010

Farnell with revenue growth of 23% in 3Q

MDD Europe’s sales grew 34.4% year on year, with third quarter sales per day at the highest ever level achieved by the business, reports distributor Premier Farnell.
The momentum from the prior quarter has continued into the third quarter with Group sales growing 23.3% and Group operating profit up 48.5%, despite tougher year on year comparators. The gross margin has improved for eight consecutive quarters, up 0.3 percentage points on the prior quarter to 41.1%.



Strategic Highlights

- All of its Asia Pacific businesses were rebranded as element14 in the quarter

- Global EDE sales grew 41.0% year on year, a 21.2 percentage point outperformance of the wider market, and the company's MDD active customer base grew 7.6% year on year. Both clear indications of our market share gains.

- EDE sales in the third quarter accounted for 52.1% of sales from MDD Europe and Asia Pacific and MDD Americas. In North America progress to increase sales mix towards the EDE sector continued, with EDE sales now accounting for 38.1% of the region’s total third quarter sales

- Sales from developing markets continue to grow strongly and for the quarter sales in Greater China grew 83.2% year on year. Sales in India and Eastern Europe grew 55.0% and 71.0% year on year, respectively

Commenting on the results, Harriet Green, Group Chief Executive, said:

“The momentum which delivered a ten year high in the Group’s second quarter performance has continued into the third quarter. Group sales grew 23% year on year, which represents a 10 percentage point increase on the third quarter of two years ago, while sales per day for the month of October were the highest they have ever been. This positive performance is a clear reflection of the benefits associated with our business’ transformation and the execution of our strategy for profitable growth."

“The strong sales growth in the third quarter has continued into November where sales were up 16% compared to November last year, which is when the Group returned to year on year growth following the downturn. The continuation of this strong momentum and the execution of our 1,000 day strategy gives the Board confidence that the Group will deliver significant profitable growth for the remainder of the financial year inline with its expectations and have good sales momentum as we enter the new year.”

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