Reece flags near term challenges, shares dive
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More news: Shares in Reece dropped more than 7% to $25.16 after the plumbing supplier reported softer housing markets in Australia and New Zealand and mixed demand across the US and flagged near term challenges in both regions.
The group posted an 8% lift in net profit to $419.2 million and sales revenue of $9.1 billion, in line with analyst estimates.
Reece lifts full-year profit in softer trading environment
The news: Plumbing supplier Reece has reported a lift in full-year profit and sales despite a softer trading environment.
The numbers: Net profit for the year to June was up 8% to $419.2 million, in line with analyst estimates. Sales revenue rose 3% to $9.1 billion.
The company will pay a final dividend of 17.75 cents a share, up from 17 cents a year ago.
The context: Reece CEO Peter Wilson said the company delivered a solid result in a challenging environment, supported by the ongoing disciplined execution.
Revenue improved despite the impact of softer housing markets in Australia and New Zealand (ANZ) and mixed demand across the US. Earnings increased 5%, reflecting a focus on cost control to mitigate higher operating costs, particularly related to wages, he said.
The group expects the near term to remain challenging in both regions. However, it said the longer term fundamentals remain positive, with demand for housing and infrastructure supported by long-term structural factors.
The company also announced former NAB chief executive Ross McEwan will be joining its board from 1 October.
The sources: ASX announcement, ASX announcement
