Ferguson plc (FERG) Q4 2022 Earnings Call Transcript

For the period ending July 31, 2022

September 27, 2022 7:30 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Hello, and welcome to Ferguson's Fourth Quarter and Year-End Results Conference Call. My name is Adam, 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 when you are ready.

Brian Lantz

Good morning, everyone, and welcome to Ferguson's fourth quarter and year-end earnings conference call and webcast. Hopefully, you've had a chance to review the earnings announcement we issued this morning. The announcement 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 on today's call 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 on these matters is also included 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 announcement on our website for additional information regarding those non-GAAP measures, including a reconciliation to the 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 fourth quarter and year-end results conference call. On today's call, I'll cover highlights of both our full-year and our Q4 performance. I'll also provide a view of our end markets before turning the call over to Bill for the financials and our outlook for fiscal year 2023. I'll then come back again to share some thoughts on how we are executing our strategy and conclude with some closing remarks before Bill and I take your questions.

Starting with our full-year performance. Our teams delivered outstanding sales and profit growth in fiscal 2022. We would like to express sincere thanks to our associates for their remarkable efforts to serve our customers, helping to make their project simple, successful and sustainable.

Revenue of $28.6 billion was 25% above last year and more than 23% above on an organic basis. This performance was driven largely by our ability to deliver on our customer's projects amid unprecedented industry supply chain pressures. We controlled our operating expenses and increased productivity to ensure that the profit growth we achieved outpaced our revenue growth. As a result, we delivered adjusted operating profit growth of 41% for the full-year and adjusted diluted earnings per share growth of 45%.