So far this year, Travis Perkins has seen a 10.9% growth in revenue despite selling 3.9% less stuff.
In a third-quarter trading update today, the company said that over the first nine months of the year its merchanting division had seen volumes shrink by 2.5%, compared to 2021, but revenues had grown 13.3%. Its Toolstation division has seen volumes fall 10.5% this year, leading to a 1.2% revenue fall for this part of the business.
In the third quarter of 2022, merchanting volumes fell 6.0% but revenue grew 11.5% . Toolstation volumes fell 3.4% but revenue was up 6.1%.
Across the group, third-quarter volumes were down 5.6% but revenue up 10.7%. (All comparisons are trading day adjusted.)
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Chief executive Nick Roberts said: “The group has delivered a solid performance during the third quarter with the merchanting businesses again outperforming their markets and an improved performance in Toolstation. We continue to benefit from our diverse end market exposure from small independent builders through to large contractors delivering national infrastructure projects.
“During the second half of the year we have seen growing macroeconomic uncertainty. We are focused on maintaining cost discipline in our businesses and the actions taken to simplify our operating structure in recent years have created the flexibility to adapt to changing market conditions.
“All of our businesses see opportunities to further develop their propositions to meet our different customers’ needs, as they seek to navigate an increasingly complex construction landscape, characterised by new environmental and safety legislation and a commitment to deliver against net zero targets. We remain confident that our market-leading businesses, backed by focused capital allocation, a strong balance sheet and significant strategic growth opportunities, leave us well placed to outperform in our markets.”
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