Electronics Production | June 10, 2010
Revenue up 20% for Premier Farnell
"Strong sales growth together with the positive impact of our operational gearing has resulted in operating profit growth of 45.2%", the company states.
The return to positive year on year sales growth in MDD Americas in February accelerated throughout the quarter, representing an upward trend in sales per day for the past eleven months. The division’s first quarter sales grew 17.0% and underlying operating profit grew 121.4%, with the business also seeing a significant year on year improvement in gross margin. Sales momentum in the company's other MDD regions from the fourth quarter has accelerated, with Europe and APAC delivering year on year sales growth of 26.2% and 50.9%, respectively. The first quarter gross margin increased a further 0.5 percentage points over the fourth quarter to 40.8%, representing the sixth consecutive quarter of gross margin improvement, a clear differentiator in our industry. The Group’s first quarter underlying return on sales increased to 11.0%, a 0.5 percentage point improvement on the prior quarter and a 2.4 percentage point increase on the prior year. Net financial liabilities reduced by £15.3 million in the quarter, excluding the impact of exchange rates. The developing international markets of Greater China, India and Eastern Europe continue to deliver strong growth, with sales up 112.8%, 74.0% and 75.6%, respectively on the prior year, the distributor states. Commenting on the results, Harriet Green, Group Chief Executive, said: "The successful execution of our strategy together with increased activity levels within the global electronics supply chain has seen the positive sales trends from February continue throughout the quarter, with Group sales growing 20% year on year. This sales performance, combined with the operational leverage inherent in our business, has resulted in year on year underlying operating profit growth of 45%.