Waterco Limited (ASX:WAT) Reports HY25 Financial Results
Financial Performance
Waterco Limited reported a 14% increase in sales revenue to $132.4 million for the half-year ended 31 December 2024. Underlying EBITDA decreased by 4% to $16.6 million, while statutory NPAT fell 15% to $5.9 million. Underlying NPAT declined by 11% to $6.6 million, with an underlying EPS of 18.8 cents.
Dividend Declaration
The Board declared an interim fully franked dividend of 7 cents per share, payable on 2 May 2025.
Segment Performance
In the ANZ region, sales rose 12% to $109.2 million, driven by the Australian pool division. North America and Europe saw sales increase by 22% to $15.4 million, despite EBIT dropping 30% to $0.5 million. The Asia segment achieved a 15% sales growth to $7.8 million, with EBIT declining to $0.2 million.
Executive Comments
Soon Sinn Goh, Chairman/Group CEO, stated, “The first quarter was challenging, with softer sales across the Group. However, we saw signs of recovery in several sectors during the second quarter. While the external environment remained difficult, our diversified revenue streams supported strong overall sales growth compared to HY24. That said, cost pressures and foreign exchange translation losses impacted net margins.
Although our first-half performance was below expectations, we anticipate a stronger second half, underpinned by seasonal demand and the execution of cost-reduction initiatives. These efforts will position Waterco for improved profitability moving forward.”
Motley Fool contributor Matt Burgess has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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