RS Group plc (LSE:RS1) reported a 10% increase in first-half fiscal 2027 sales to £1.54 billion, supported by revenue growth across all geographic regions and an improvement in operating profit margins.
The industrial products and services distributor recorded organic sales growth of 7% at constant currency for the six-month period, while earnings before interest, tax and amortisation (EBITA) increased 15% on the same basis.
Group sales exceeded market consensus estimates by 4%, while EBITA came in 4% above expectations. The company maintained its full-year FY2027 guidance.
Operating Profit Margins Increase to 9.2%
RS Group reported EBITA of £142 million for the first half, representing organic constant currency growth of 15% compared with the previous year.
The group’s EBITA margin increased by 50 basis points to 9.2%, reflecting improved profitability across its regional operations.
Profit before tax reached £133 million, while earnings per share were 20.9 pence.
Both measures exceeded analyst consensus forecasts by approximately 5%.
Management attributed the overall performance to sales growth across all regions, supported by higher volumes and improved operating margins.
EMEA Sales Rise 5% as Major Markets Return to Growth
The Europe, Middle East and Africa (EMEA) division generated revenue of £946 million, an increase of 5% on an organic constant currency basis.
RS Group reported that all major markets in the region returned to growth during the period, with sales volumes increasing 3% year-on-year.
Regional EBITA rose 12% to £98 million, while the operating margin improved by 40 basis points to 10.4%.
EMEA remained the group’s largest geographic division by revenue and operating profit contribution.
Americas Revenue Increases 9%
The Americas division reported sales of £468 million, representing organic constant currency growth of 9%.
The increase was supported by higher sales volumes, with the core Americas business excluding RS Integrated Supply (RSIS) recording growth of 12% year-on-year.
Regional EBITA increased 25% to £44 million.
The EBITA margin expanded by 120 basis points to 9.4%, compared with the corresponding period last year.
The improvement reflected higher revenue and increased profitability within the regional business.
Asia Pacific EBITA More Than Doubles
RS Group’s Asia Pacific division reported revenue of £130 million, an increase of 15% in organic constant currency terms.
Sales volume growth of 12% contributed to the regional performance.
EBITA more than doubled to £8 million, while the operating margin increased by 320 basis points to 6.2%.
Asia Pacific recorded the highest organic sales growth rate among the group’s three geographic divisions during the first half.
Net Debt Reaches £369 Million
RS Group reported net debt of £369 million at the end of the first-half period.
The group’s net debt-to-EBITDA ratio stood at 1.1 times, compared with 1.0 times at the end of fiscal 2026.
The company said its financial position continues to support the implementation of its strategic investment programme.
Management remains focused on operational improvements and investment opportunities intended to support future growth.
FY2027 Guidance Maintained
RS Group reiterated its full-year fiscal 2027 guidance following the first-half performance.
Management said trading momentum remained encouraging, supported by growth across the company’s regional markets.
However, the group highlighted continued geopolitical uncertainty and more demanding comparative figures during the second half of the financial year.
The company expects to continue implementing its strategic investment programme while maintaining its focus on operating efficiency and profitable growth.
More About RS Group
RS Group plc (LSE:RS1) is a global distributor of industrial products and services, supplying maintenance, repair and operations products, electronics and related technical solutions. The company serves industrial customers across Europe, the Middle East, Africa, the Americas and Asia Pacific through digital and physical distribution channels.
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