SYDNEY - Australian plumbing supplies group Reliance Worldwide has announced that it will maintain its dividend following a 1.7% increase in annual profit. The company will focus on preserving margins amidst lower demand in the upcoming fiscal year.
Reporting in U.S. dollars, Reliance reported a net profit of $139.7 million for the 12 months ending in June, compared to $137.4 million the previous year. Revenue saw a 6.1% rise to $1.24 billion, and the directors declared a final dividend of 5 Australian cents (3.2 U.S. cents) per share.
Earnings before interest, tax, depreciation, and amortization also rose by 6.6% to $276.1 million, which includes gains from property and integration costs related to the company's 2021 EZ-Flo acquisition. After excluding one-off items, adjusted EBITDA increased by 2.2% to $274.6 million, or 5% once currency fluctuations are taken into account.
Reliance anticipates decreased sales for fiscal year 2024, which commenced on July 1, as macro conditions lead to fewer large remodeling projects. Despite this, Chief Executive Heath Sharp aims to maintain operating margins through cost efficiencies and pricing actions.
"We are also focusing on maintaining strong cash flow. Our priority is to ensure Reliance is strongly positioned for when the markets start to recover," Sharp stated.
