In the United States, Ferguson Enterprises ended the year with sales of $18.4 billion. Trading profit was 7.3 percent ahead of last year, and the trading margin was 8.2 percent. The company grew 6.2 percent on an organic basis, with an additional 4.2 percent coming from acquisitions.
Ferguson’s Waterworks business and blended branches (locations that serve a mix of residential and commercial customers) grew well, and Industrial and HVAC revenue growth were also particularly strong. Standalone eBusiness was slightly lower than last year.
“Despite slower growth in the second half, we continued to outperform the market and grow strategically – through acquisitions and organic growth,” said CEO Kevin Murphy. “It’s a testament to our incredible associates that we were able to deliver this performance and finish the year strong.”
Ferguson closed on 14 acquisitions last fiscal year, gaining additional expertise in valve and automation, geotextiles and cabinetry across a mix of business groups.
In addition, Ferguson plc recently announced its intention to demerge the Wolseley UK business from the rest of the Group, subject to shareholder approval. Following the demerger, Ferguson plc will be wholly focused on serving customers in North America. Ferguson Enterprises and Wolseley Canada will continue to operate as standalone businesses. For all associates, customers and suppliers, it is business as usual.
The company also announced Ferguson plc CEO John Martin will step down Nov. 19, and Kevin Murphy will become Group CEO, in addition to his current role as CEO of Ferguson Enterprises.
“It has been a huge honor to serve Ferguson for nearly 10 years,” said Group CEO John Martin. “I am extremely proud of the achievements of the Company which are wholly attributable to our talented and dedicated associates. I am also delighted that I will be succeeded by an executive as talented as Kevin Murphy, under whose leadership I am confident that the Company will continue to go from strength to strength.”
Lastly, considering these changes and the simplification of Ferguson plc over the last several years, the board of directors is once again considering the most appropriate listing structure for the Group. A range of options and associated costs and benefits will be considered, and the company will consult with shareholders in due course.