SG&A Spending Patterns: Ferguson plc vs. Nordson Corporation

A Decade of Financial Strategy

Over the past decade, Ferguson plc and Nordson Corporation have showcased distinct strategies in managing their Selling, General, and Administrative (SG&A) expenses. Ferguson plc's SG&A expenses have surged by approximately 20% annually, peaking at $6.07 billion in 2024. In contrast, Nordson Corporation maintained a more conservative growth, with expenses increasing by about 3% per year, reaching $812 million in 2024.

Strategic Insights

Ferguson plc's aggressive spending reflects its expansion strategy, while Nordson's steady approach suggests a focus on operational efficiency. The data from 2014 to 2024 highlights Ferguson's significant investment in growth, with a notable jump in 2022, where expenses rose by 20% compared to the previous year. Meanwhile, Nordson's expenses remained relatively stable, indicating a consistent cost management strategy.

Conclusion

These spending patterns reveal the contrasting financial philosophies of two industry leaders, offering valuable insights into their long-term strategic priorities.