RWC (ASX:RWC) Reports Six-Month Financial Results and Declares Dividend
Financial Performance
RWC reported net sales of US$676.5 million for the six months ended 31 December 2024, marking a 14.8% increase compared to the prior corresponding period. Excluding the acquisition of Holman Industries and the closure of the Supply Smart sales model, sales grew by 3.8%. Adjusted EBITDA rose to US$143.8 million, a 15.2% increase, with an adjusted EBITDA margin of 21.3%. The reported net profit after tax was US$67.2 million, up by 31.8% year-over-year, and adjusted earnings per share reached US$9.8 cents, a 14.0% increase.
Interim Dividend and Share Buy-Back
The company declared a total distribution of US$5.0 cents per share, consisting of an unfranked interim cash dividend of US$2.5 cents per share and an on-market share buy-back of US$19.5 million. This distribution represents 58% of reported NPAT and 51% of adjusted NPAT.
Trading Outlook
RWC expects full-year external sales for FY25 to increase by mid-single digits compared to FY24. Adjusted EBITDA margins are anticipated to improve through cost reduction and efficiency measures, despite ongoing challenges in the residential markets across different regions.
Debt Position and Capital Structure
As of 31 December 2024, RWC’s net debt stood at US$380.6 million, with a net debt to EBITDA ratio of 1.41 times, below the target leverage range of 1.5 to 2.5 times. The weighted average debt maturity was 6.2 years, and 62% of total drawn debt was at fixed rates.
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