Premier Farnell Continues to Deliver Good Performance in 3 Months ending 31 December 2018
Continued Sales Growth alongside Double-digit Growth in Operating Income
Premier Farnell, the Development Distributor, delivered growth in the second quarter of fiscal year FY19 (three months ended 31 December 2018) with global revenue of $368.3m, up +2.8% year over year (+5.2% year over year on a constant currency basis). The growth rate was affected by softness in single board computing sales. Operating income continued to grow strongly, up 19% year over year.
Performance in Asia Pacific was strong, whilst Europe and North America delivered good levels of sales growth. Continued investment in inventory helped support customers through allocation and shortages in the market. Growth continued to be supported by impressive sales growth in Passives and a continued good performance in Test and Tools.
In preparation for the United Kingdom leaving the European Union on 29 March 2019, Premier Farnell has been investing in stock and warehouse infrastructure outside of the United Kingdom, to ensure that it is ready to respond to potential outcomes, and can support customers as they work to bring their products to market through changing times.
Chris Breslin, President of Premier Farnell said: “We help our customers bring their products to market by providing a strong portfolio of supplier products and innovative technologies. During the quarter we have continued to invest in stock and added further new suppliers to our linecard including Tronics, Pulse, Kiktronik, and Taoglas.”
During the quarter, Premier Farnell’s new 360,000 sq foot distribution warehouse in Leeds, United Kingdom, reached a key milestone with external build complete. Due to be operational in early 2020, the new warehouse will become the largest distribution centre in the Premier Farnell group and a hub for future growth.
Breslin added: “As we take our place within the Avnet ecosystem, this increased distribution capacity coupled with the latest technology means our customers can continue to rely on us to deliver products when they need them.”
Premier Farnell operates as Farnell element14 in Europe, Newark element14 in North America and element14 in Asia Pacific.
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