Reece Group sales report highlights

Reece Group (ASX:REH), a distributor of plumbing and HVAC-R products, has reported a 5% decline in sales revenue for Q1 FY25, amounting to AUD 2,232 million. This decrease reflects challenging trading conditions and reduced housing activity in Australia, New Zealand, and the United States.

Reece Group's strategic outlook

Reece Group has reported a decline in sales revenue for Q1 FY25 due to a challenging trading environment and housing market softness. In ANZ, sales were stable, supported by recent M&A activity, while the US saw a 6.5% sales decline due to lower volumes and weather impacts. The company forecasts an Adjusted EBIT between AUD 300 million and AUD 320 million for the first half of FY25. Reece remains focused on growth and customer service, emphasizing a long-term strategic investment approach.

CEO's insights on current performance

Lead indicators remain challenging in both regions. The US experienced its first interest rate cut, but its effects will take time to manifest. Our strategy is investing through economic cycles to build a robust business for the long term. Despite recent challenges, we remain committed to growth, strengthening core capabilities, and fulfilling customer commitments.