Ferguson Posts Higher Fiscal Year 2022 Pretax Profit, Consensus-Beating Revenue

By Anthony O. Goriainoff

Ferguson PLC on Tuesday posted a rise in pretax profit for fiscal 2022 on consensus-beating revenue, and said it will move to a quarterly dividend schedule in fiscal 2023 and that it is extending its share buyback program.

The London-listed supplier of plumbing and heating products reported a pretax profit of $2.71 billion for the year ended July 31, compared with $1.86 billion for fiscal 2021. Six analysts polled by FactSet had a pretax profit consensus of $2.72 billion.

Adjusted operating profit--a metric that strips out exceptional and other one-off items--was $2.95 billion compared with $2.09 billion the year before. The company had guided for adjusted operating profit in the $2.85 billion to $2.95 billion range.

Revenue rose to $28.57 billion from $22.79 billion the year prior. Revenue consensus for the year was $28.38 billion, also taken from FactSet and based on 17 analysts' forecasts.

The board declared a final dividend of $1.91 a share, taking the full-year dividend to $2.75, a 15% rise on the prior year. The first dividend payout under the new schedule will be in the first quarter, the company said.

Ferguson said it was extending its share repurchase program by a further $500 million, and that it expects this to be completed within the next 12 months.

The company said that, for fiscal 2023, it expects net sales growth in the low single digits and that these will be driven by market outperformance as well as completed acquisitions.

"The agility of our business model will enable us to navigate macro economic headwinds. Importantly, we remain confident in the strength of our markets over the longer term and our financial guidance continues to reflect market outperformance, both organically and from acquisition," Chief Executive Kevin Murphy said.

Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com

(END) Dow Jones Newswires

September 27, 2022 07:31 ET (11:31 GMT)

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