Reece has announced a significant drop in net profit after tax for the year ending June 30, reporting $317 million compared to $419 million in the previous financial year, a decrease of 24 per cent. The company, which distributes plumbing, bathroom, and HVAC-R products, saw its earnings per share fall to 49¢ from 65¢. Reece operates across Australia, New Zealand, and the United States.
The company’s sales revenue experienced a slight decrease of 1 per cent, landing at $8.978 billion. Earnings before interest and tax (EBIT) also declined, falling 20 per cent to $548 million. Furthermore, earnings before interest, taxes, depreciation, and amortisation (EBITDA) decreased by 11 per cent to $901 million. These results reflect challenging conditions in housing markets across Australia, New Zealand, and the United States.
According to Chief Executive Officer Peter Wilson, fiscal year 2024 was “a turbulent year” with earnings impacted by soft end markets across both regions. Despite these challenges, Wilson expressed confidence in the company’s long-term strategy. “Despite current headwinds, we remain confident in our long-term approach. We are well capitalised and will continue to look beyond the cycle to protect and grow the business,” he stated.
Looking ahead, Reece anticipates a gradual recovery in Australia and New Zealand. The company expects the US housing market to remain constrained over the next 12 to 18 months, citing high mortgage rates and affordability issues. The board has declared a fully franked final dividend of 11.86¢ per share, bringing the total dividend for the year to 18.36¢, down 24 per cent.
