Ferguson PLC (FERG) Q3 2022 Earnings Call Transcript

For the period ending April 30, 2022

June 14, 2022 7:30 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Hello and welcome to Ferguson Q3 Results Conference Call. My name is Elliot and I will be coordinating your call today. [Operator Instructions]

I'd now like to turn the call over to Brian Lantz, Vice President of Investor Relations and Communications. The floor is yours. Please go ahead.

Brian Lantz

Good morning, everyone and welcome to Ferguson's Third Quarter Earnings Conference Call and Webcast. Hopefully, you've had a chance to review the earnings announcement we issued this morning. This is available in the Investors section of our corporate website and on our SEC filings web page. A recording of this call will be made available later today.

I want to remind everyone that some of our statements today may be forward looking and are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Additional information is included under the legal disclaimer in our earnings announcement. In addition, on today's call, we will also discuss certain non-GAAP financial measures. Please refer to the appendix of our earnings presentation and the earnings announcement on our website for additional information regarding those non-GAAP measures, including a reconciliation to their most directly comparable GAAP financial measures.

With me on the call today are Kevin Murphy, our CEO; and Bill Brundage, our CFO. I will now turn the call over to Kevin.

Kevin Murphy

Thank you, Brian and welcome, everyone, to Ferguson's Third Quarter Results Conference Call. On today's call, I'll cover several of the highlights of our Q3 results. I'll provide a brief update on capital deployment, including some highlights on recent acquisition activity and our journey to a primary listing on the New York Stock Exchange. And I'll also provide a view of our end markets before turning the call over to Bill for the financials. I'll then come back at the end to set our outlook for the remainder of the fiscal year before Bill and I take your questions. Our teams delivered another exceptional performance in the third quarter. We'd like to express sincere thanks to our associates for their remarkable efforts to serve our customers, helping to make their projects simple successful and sustainable.

We continue to leverage our consultative approach, our scale, our global supply chain and our strong balance sheet to support our customers' projects. This drove 23% revenue growth on top of tough prior year comparables. Our pricing discipline and technology-enabled productivity gains enabled us to drive strong operating leverage with adjusted operating profit up 34%. This operating profit performance, coupled with the execution of our share buyback program drove adjusted diluted earnings per share growth of over 40%. We're proud of these results and are confident in the strength of our business model as we go forward.