Travis Perkins (TPK) Q3 2024 TU earnings summary

Executive summary

• Group revenue declined 5.7% in Q3 2024, mainly due to weakness in the Merchanting segment.

• Toolstation delivered robust growth, with UK revenue up 2.9% and Benelux like-for-like sales up 9.6%.

• Toolstation France operations ceased trading, with full closure on track by year-end.

• FY24 adjusted operating profit is expected to be around £135m.

• New CEO Pete Redfern is prioritizing operational execution and efficiency improvements.

Financial highlights

• Group like-for-like revenue declined 6.8% in Q3 2024 compared to the same quarter last year.

• Merchanting segment total revenue fell 7.1%, while Toolstation grew 1.7% in Q3 2024.

• Year-to-date, group like-for-like revenue declined 5.6%.

• Price and mix effects were negative for Merchanting (-0.8%) and positive for Toolstation (+0.6%) in Q3.

Outlook and guidance

• FY24 adjusted operating profit is forecast at approximately £135m.

• Management sees early signs of recovery in key end markets, but expects growth to be slow and non-linear, with financial benefits emerging in H2 2025.