RS Group, an industrial and electronics products distributor, has reported a decline in revenue for the third quarter of this year. The decrease is attributed to weak industrial sentiment and slower unwinding of customer surplus inventories, particularly in the electronics sector.
Revenue for the three months ended Dec. 31 rose 1% due to contributions from the acquisitions of Distrelec and Risoul. However, on a like-for-like basis, it fell 10% as markets proved weaker than expected. Specific financial figures were not disclosed.
Europe, the Middle East, and Africa witnessed a decline of 5% in revenue on a like-for-like basis. Asia-Pacific saw a decrease of 13%, while the Americas experienced the greatest decline at 19%. The poor performance in the Americas is attributed to high exposure in the automation and control category, electronic products, and small manufacturers compared to the rest of the group.
Despite geopolitical uncertainty, extended holiday periods, and extreme weather conditions, business in Asia-Pacific is showing signs of improvement. EMEA remains stable, while the Americas continue to present challenges.
RS Group's investment in growth accelerators is on track and there are ongoing opportunities to enhance operational effectiveness. The integration of Distrelec and its cost reduction program are progressing ahead of plan.
Chief Executive Simon Pryce remains confident in the company's ability to create value for all stakeholders when the markets return to growth. He emphasized the long-term perspective and expressed optimism about the future.