Public E&S Companies Post 0.6% Organic Growth In First Quarter
Eight publicly reporting foodservice equipment and supplies companies posted combined organic revenue growth of 0.6% the first quarter 2017 compared to 1Q/16, according to numbers compiled by FER Research Associate John Muldowney. (Muldowney is also principal at Clarity Marketing.) Including acquisitions, which have been a significant factor the past year, combined revenues grew 7.2%.
Combined organic sales growth of the six publicly reporting equipment-oriented companies was 0.5%, with four of the six posting increases. Welbilt had its first quarterly revenue growth in more than a year as slow chain sales and the effects of divestitures have made for tough comparisons. Middleby Foodservice posted an 11.9% increase, but the Follett acquisition was the reason. The company said organic sales fell 4.1%. Standex Foodservice also benefited from an acquisition and sales revenues rose 5.2%. But organic sales were off 3.2%. Rational North America continued to report impressive gains, as it benefits from a sales restructuring. Sales rose 52% in the first quarter. Unified Brands showed an estimated 9% gain as it benefited from chain roll-outs. ITW’s Food Equipment Group posted a 1% increase.
The two supplies-oriented companies combined sales were up 0.9% with Carlisle Foodservice up 5.9% organically and Libbey Foodservice down 4.1%.