Reliance Worldwide tumbles on flat guidance
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More news: Shares in Reliance Worldwide Corp tumbled nearly 7% to $5.01 in early trading after the plumbing supplies manufacturer forecast a mid-single digit percentage points rise in full-year sales.
By contrast, half-year sales were up nearly 15% and first-half profit up by a third on the back of contribution from Holman Industries, which it acquired in March 2024.
Acquisition helps Reliance Worldwide boost HY profit by a third
The news: Plumbing supplies manufacturer Reliance Worldwide lifted its first-half profit by a third on the back of contribution from Holman Industries.
The numbers: Net profit for the six months to December was up 31.8% to USD67.2 million ($105.7 million), while revenue rose 14.8% to USD676.5 million. It will pay an interim dividend of 2.5 US cents a share, up from 2.25 US cents a year ago, and will also allocate USD19.5 million for its ongoing share buyback.
The context: Reliance said the stronger half-year results reflected full period contribution from the gardening, irrigation and plumbing parts business Holman. “The seamless integration of Holman into RWC’s Australian operations after acquisition in March 2024 has enabled us to perform strongly in the context of a weak Australian residential construction sector,” CEO Heath Sharp said.
It delivered 5.4% sales growth in the Americas business, partly as a result of “the pull-forward of demand” from the second half to the first half due to the timing of future customer initiatives. Reliance Worldwide expects full year sales to be up by mid-single digit percentage points on FY24.
The source: ASX
