Travis Perkins Reports Revenue Decline Amid Merchanting Struggles in Q3 2024

Travis Perkins plc announced a revenue dip of 5.7% for Q3 2024, primarily influenced by challenges in the Merchanting segment. The Merchanting revenue fell by 8.2% like-for-like, with noticeable market share loss over the summer. Attempts to improve pricing have not halted the volume decline.

However, Toolstation showed resilience, achieving a 2.9% revenue increase in the UK and Benelux. The like-for-like sales surged by 9.6%. The closure of Toolstation France remains on schedule, with significant operational ceases already executed.

Despite the Merchanting downturn, the company forecasts an adjusted operating profit of approximately £135 million for FY24. The broader end markets are stabilizing, with anticipated gradual growth witnessed towards late 2025. Pete Redfern, the new Chief Executive, aims to invigorate branch performance and streamline operations, emphasizing a return to core competencies and market recovery.