# Electrocomponents PLC Trading Statement Q1 to June 2019

- Link: https://www.directorstalkinterviews.com/electrocomponents-plc-trading-statement-q1-to-june-2019/412786774
- Published: 2019-07-03T07:39:28+01:00
- Author: Amilia Stone

**Electrocomponents plc** (LON:ECM) today issued a trading update for its first 
quarter ended 30 June 2019.

| 
 | **Like-for-like revenue growth**^(**(1)**) | 
| **Region** | **Q4 to March 2019** | **Q1 to June 2019** | 
| Northern Europe | 10% | 7% | 
| Southern Europe | 7% | 5% | 
| Central Europe | 13% | 3% | 
| Emerging markets | 9% | 9% | 
| **Total EMEA** | **10%** | **5%** | 
| Americas | 6% | 0% | 
| Asia Pacific | 3% | 1% | 
| **Group** | **8%** | **4%** |

 * Q1 Group like-for-like revenue growth was 4% as continued strong growth in Industrial
   revenue more than offset an expected slowdown in Electronics revenue.

 – RS PRO and Digital continued to outperform Group growth with like-for-like revenue
growth of 9% and 5% respectively.

– An expected reduction in Raspberry Pi sales ahead of the widely anticipated launch
of Pi 4, had a c. 1% negative impact on Group like-for-like revenue growth.

 * We remain focused on driving market share gains across all regions of the world.

 – EMEA (64% of Group revenue) saw like-for-like revenue growth of 5% in Q1, predominantly
driven by market share gains. We are seeing the strongest share gains in Northern
Europe where our initiatives to improve the offer and drive value-added solutions
are most advanced. We continue to focus on extending these initiatives across the
broader region.

 – The Americas (26% of Group revenue) saw flat revenue trends reflecting a softer
market for industrial production.

 – In Asia Pacific (10% of Group revenue) we continue to see strong growth in revenues
in Australia and New Zealand and South East Asia, which more than offset declines
in Greater China and Japan.

 * As reported at our preliminary results, during H2 2019 we initiated a programme
   to broaden our electronics inventory as we seek to exploit market opportunities
   to strengthen our electronics offering. This will negatively impact gross margin
   in H1 2020. Overall, we expect a broadly stable gross margin for the full year.

 * We will continue to focus on tightly managing our operating costs, while investing
   behind our strategy to drive longer-term sustainable growth.

 * While the external environment has become more uncertain, we remain well positioned
   to deliver good progress in the year.

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