Reece is a leading supplier of plumbing, bathroom, HVAC-R, waterworks, and refrigeration products with a strong market presence in Australia, New Zealand, and the United States, serving a diverse range of clients across trade, retail, commercial and infrastructure.
Reece Group (REH), a current holding within the value component of the ASX Growth portfolio, has this morning announced first-half results for the 2024 financial year.
The plumbing and bathroom supplies company has this morning reported robust financial performance for the first half of 2024.
The plumbing and bathroom supply company has reported an adjusted EBITDA of $526.1 million, marking a 7.8% increase from the previous year, Reece showcases its operational excellence and ability to drive profitability amidst economic fluctuations.
The company reported a noteworthy 20% year-on-year growth in net income, reaching $223.6 million, alongside a steady sales revenue increase of 2.5% to $4.54 billion. This performance is particularly commendable, considering the backdrop of subdued demand and a softening market environment in Australia and New Zealand (ANZ). Despite these challenges, Reece has not only managed to sustain growth but also maintain its interim dividend per share at $0.08, unchanged from the same period a year earlier.
Reece’s ability to deliver a solid result, despite the subdued demand setting and macro environment challenges in the first half, is a testament to its robust business model and operational efficiency. The neutral impact of product inflation at a Group level, coupled with the company’s constant currency sales revenue growth, excluding the positive impact of foreign exchange, solidifies Reece’s standing as a high-quality company.
Reece remains a valid buy/hold recommendation within the ASX Growth portfolio, which is next scheduled to be rebalanced on March 15th, 2024.
