Investment in inventory and new franchises help support double digit growth for Premier Farnell
Business delivers global growth of 11.1% in year ending 1 July 2018 as it invests $100m in inventory and adds 22 new suppliers
Premier Farnell, delivered an exceptional FY181 trading performance with global revenue of $1.5bn, up +11.1% year over year (+6.5% year over year on a constant currency basis). The company delivered consecutive year on year growth each quarter at a global and regional level (EMEA, North America & Asia-Pacific) and exited the year with Q4 sales growth of 13% year over year.
Alongside this strong sales performance, gross margin remained stable across FY18 and the ongoing realisation of acquisition synergies benefitted operating expenses, delivering a significant increase in operating income year over year since the date of acquisition by Avnet.
Premier Farnell’s strong financial performance was supported by ongoing investment in the business to support customers. Premier Farnell invested $100m in additional inventory during the year and added 22 new suppliers, adding depth and breadth of product offering and providing customers with even greater access to the latest new product introductions and established product offerings.
Most recent suppliers added to Premier Farnell’s supplier network include IDEC and Klein Tools, building on the addition of Xilinx, Nordic Semiconductor and Arduino earlier in the year. Inventory investment crossed the entire range of product categories from Semiconductors, Interconnect, Passives, Electro-mechanical and Single Board Computing; to Test and Tools where Premier Farnell leads the market for high service distribution.
Chris Breslin, President of Premier Farnell said: “This is a significant result. We have built real momentum, delivering growth every quarter, in every region, and 13% year over year growth globally during the fourth quarter. As the Development Distributor, it is our aim to be there when it matters, helping customers develop their products and businesses, and supporting the development of the next generation of engineers. The significant investment we have made in the business during this year – both in inventory and the development of new relationships with supplier partners, has supported this result. The ongoing take-up of the BBC Micro:bit as an education tool has also continued and we have supported new programmes in Canada and Croatia. As we look forward, we are extremely positive about the opportunities for the business.”
During the year Premier Farnell also announced a major investment in new warehousing capabilities in Leeds, United Kingdom, which will be the largest ever warehouse development in the Leeds City region. The distribution centre is scheduled to be fully operational by late 2019/early 2020, when it will supply Premier Farnell’s network of eight other warehouses across the globe including Gaffney in North America. This state-of-the-art new facility will enable the business to develop core value-adding services for customers right from its warehouse operations.
Premier Farnell operates as Farnell element14 in Europe, Newark element14 in North America and element14 in Asia Pacific.
This document contains certain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on management’s current expectations and are subject to uncertainty, changes in facts and circumstances and other risks which could cause actual results to differ materially from those described in the forward-looking statements. More detailed information about these and other factors is set forth in filings by Avnet, Inc. with the Securities and Exchange Commission, including Avnet’s reports on Form 10-K, Form 10-Q and Form 8-K. Except as required by law, there is no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
Notes to editors
1 fiscal year ending July 1, 2018
Premier Farnell is a global technology leader with over 80 years in the high service distribution of technology products and solutions for electronic system design, production, maintenance and repair. Premier Farnell uses this experience to support its broad customer base, from hobbyists to engineers, maintenance engineers and buyers as ‘The Development Distributor’, working with leading brands and start-ups to develop new products for market, and supporting the industry as it seeks to develop the current and next generation of engineers.
Premier Farnell is a business unit of Avnet (Nasdaq: AVT). Premier Farnell trades as Farnell element14 in Europe, Newark element14 in North America, and element14 throughout Asia Pacific. The Premier Farnell Group is supported by a global supply chain of more than 3,500 suppliers and has an extensive inventory profile developed to anticipate and meet the needs of innovative customers everywhere. Premier Farnell sells direct to consumers through a network of resellers, and its CPC business in the UK.
For more information, visit the website at http://www.premierfarnell.com