Reliance Worldwide Corporation (ASX: $RWC) HY24 Financial Review

Reliance Worldwide Corporation (ASX: $RWC) reported a 2% decrease in net sales to $589.5 million for the six months ended 31 December 2023. The reported EBITDA for the period was $112.6 million, reflecting a 19% decrease compared to the prior corresponding period. The company also announced the acquisition of Holman Industries, expected to be completed in March 2024, subject to conditions precedent and customary closing conditions.

Executive Commentary on HY24 Performance and Acquisition

The results for the period reflect a challenging operating environment, with lower sales in the Asia Pacific and EMEA regions. The acquisition of Holman Industries is expected to expand our offering to the wholesale channel in Australia and strengthen exposure to the retail channel, positioning us for future growth and market expansion.

Summary of HY24 Performance and Outlook

Reliance Worldwide Corporation (ASX: $RWC) reported a decline in net sales and EBITDA for the HY24, attributed to lower sales in the Asia Pacific and EMEA regions. The acquisition of Holman Industries is anticipated to enhance the company's market presence and drive future growth. Looking ahead, RWC expects its revenues to be down by a low single-digit percentage in FY24, with stable operating margins targeted for the full year, offsetting lower volumes with cost savings. The company remains cautious about the economic outlook, citing lower interest rates and persistent cost inflation pressures. RWC's cost management programs and operational productivity initiatives are expected to mitigate these challenges.