Reece Limited (ASX:REH) Announces HY25 Financial Results
Financial Performance
Reece Limited reported a 3% decrease in sales revenue to $4,402 million for HY25, compared to $4,537 million in HY24. EBIT declined by 17% to $305 million, and EPS fell by 19% to 28 cents. Capital expenditure to sales increased to 2.9%, up by 38 basis points. The company declared an interim dividend of 6.5 cents per share, fully franked.
Operational Highlights
The ANZ region saw flat sales revenue at $1,980 million with 14 net new branches. In the US, sales revenue decreased by 5% to US$1,596 million, with the network expanding to 261 stores. Reece continued its investment in business expansion, including the acquisition of Shadowboxer to enhance digital capabilities.
Dividend Declaration
The Board declared a fully franked interim dividend of 6.5 cents per share, with a record date of 19 March 2025 and a payment date of 2 April 2025.
Board Changes
Alan Wilson will step down from the Reece Board on 1 March 2025 and assume the role of Chairman Emeritus, recognising his 55 years of service. He will continue to mentor leaders and engage with customers.
Executive Comments
Peter Wilson, Chairman & CEO, stated, “Our performance for the first half reflects the challenging trading environment in both regions as mortgage rates and affordability continue to create near term headwinds in our sector. Despite the softer first half we continued to invest in the business, expanding our branch network, lifting store standards and enhancing our core capabilities. While we know the short term will have its challenges, the current environment is one Reece has seen before. Like we always do, we’ll look beyond the cycle to protect and grow the business. Over the last half we’ve taken the opportunity to reset our leadership team and refresh our Board. These changes will enable us to leverage deep industry and market knowledge across the Group and drive long term value.”
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