Reece shares climb after better-than-expected profit
Make us a preferred source
Make us a preferred source on Google
The news: Shares in Reece Limited have jumped after the plumbing supplier reported a first-half profit that beat market expectations.
The numbers: Net profit for the six months to December 2023 rose 20% to $224 million, ahead of analyst estimates. Sales revenue was up 2.5% to $4.53 billion. The company will pay an interim dividend of 8 cents a share, unchanged from a year ago.
Shares in the company were up nearly 11% to $26.65 in early trading.
The context: Reece group chief executive Peter Wilson said the company delivered a very solid half-year result despite subdued demand and a softening macro environment.
What they said: UBS analyst Lee Power said while the top line was largely in line with expectations, cost control was impressive which translated into better-than-expected earnings margins in both Australia, New Zealand and the US.
Wilson noted that he expected subdued demand in the second half.
“We take a long-term view and will continue to invest to build a stronger business and deliver on our 2030 vision of being our trade’s most valuable partner,” he added.
The source: ASX announcement
