RWC - Reliance Worldwide Corporation

[divs4ever]

Has RWC been caught up in the 'bursting pipes' saga, that is affecting FBU? Has dropped nearly 10 per cent over the past few days.
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There's been nothing on the website or on the wires. I trust they are 'true to label' and maintain a superior product.
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in RWC's case i suspect concerns over the wider construction industry dominates with the FBU saga providing the gentlest of tail winds

now it might be possible there are whispers of RWC trying to take over a weakened FBU

( i hold both companies )


now if there are whispers .. is a take-over attempt a good thing ( for either company )

maybe there are concerns of RWC customers being badly stressed by the FBU fallout

 

[So_Cynical]

Share price is back to where it was 7 months ago, along with quite a few other stocks i imagine, no big deal.

 

[divs4ever]

Share price is back to where it was 7 months ago, along with quite a few other stocks i imagine, no big deal.

yes but getting close to an acceptable target price , for a stock with some mid-term growth potential

i don't normally 'back up trucks ' or even bring a suitcase , but i hope to grab a few ( extra ) just in case it keeps going up despite what i see as tough times ahead

 

[divs4ever]

Reliance Worldwide Corporation announced Acquisition of Holman Industries.

Holman Industries is a leading manufacturer and distributor of branded plumbing and watering products in Australia
The acquisition will expand the Company's product offering and channel partner distribution reach and drive growth in the Australian plumbing market.

i hold RWC

 

[So_Cynical]

Reliance Worldwide Corporation announced Acquisition of Holman Industries.

Holman - Kind of a big deal, certainly potential for good things, big brand occupying the low price point in the market.

 

[divs4ever]

A Closer Look at Reliance Worldwide Corporation Shares – Is RWC A Buy?​

A Closer Look at Reliance Worldwide Corporation Shares - Is RWC A Buy?

Reliance Worldwide Corporation Shares (ASX:RWC) have delivered 46.09% in the last 6 months, despite a 1 month pullback. What is causing the volatility?

thebull.com.au

i hold RWC

not at the current price ( for me )

has been a nice little run up ( from the $3.81 i bought in at in August 2023 ) but i see more headwinds coming from the broader economy

they can let in all the migrants they want , but tighter credit , higher costs are all baked into the Western world cake , not to mention more regulations slowing down construction

 

[finicky]

Have taken a mild interest at times but RWC and Reece (RHC) have always looked a bit pricey or in advanced bulls to me. But took my eye off long ago and James Hardie (JHX) has been moving, RHC could be basing and the WEEKLY chart of RWC shown here is bullish even without today's advance factored in.

Maybe the U.S exposure of these might be providing traction?

From todays Ausbiz 'Close of Business'
" .. and building related stocks rallied with James Hardy, Reece and Reliance all up around 5%."

RWC WEEKLY

RHC WEEKLY

 

[divs4ever]

bought mine in August 2023 @ $3.79 so up a tad over $1 inside 12 months

won't win any 'bottom-picking awards for timing that one ( fairly average , at best )

but has done OK but i expect challenges will be coming soon ( as new construction slows down ) will be waiting somewhere under $3.50 for a second grab at this

 

[finicky]

Um dumb dumb is me. I put Ramsay (RHC) comment and a chart of RHC for comparison with RWC and it should have been Reece (REH). The chartof REH btw looks a hope but the valuation doesn't tempt me.

REH WEEKLY

 

[Dona Ferentes]

FNN CONTENT
21 August 2024

Reliance Worldwide struggles amidst soft market​

By Glenn Dyer

Global plumbing products group, Reliance Worldwide (ASX:RWC), reported the same weak results on Tuesday as its Australian-focused rivals, GWA and Reece, did on Monday.

Both local companies managed a small rise in dividends, but Brisbane-based RWC has again taken the unusual step of making a major change to the structure of its dividend with the aim of minimising the lack of Australian earnings and franking credits.

RWC said net sales for the year edged up to $US1.25 billion, from $US1.24 billion for 2022-23. That included a small contribution from the $130 million acquisition of Holman Industries, which settled in March.

RWC said that without the contribution from Holman, the 0.2% rise in sales became a fall of 2.4%. There will obviously be a larger contribution this year.

Statutory net earnings, though, weakened to $US110.6 million, down 21%. On an adjusted basis (ignoring one-offs), earnings dipped 5.7% to $US149.6 million after adjusted EBITDA came in at $US274.6 million, steady on a year earlier, while EBIT fell 3.4% to $US214.5 million.

Directors said that for the six months to December, they expect group external sales to be broadly flat, within a range of up or down by low single-digit percentage points, excluding the impact of Holman and Supply Smart.

The company will pay a final of 5 US cents a share, but that will again be split evenly between a cash dividend and a share buy-back, reflecting the company’s robust financial strategy. (The interim at the start of this year was split in the same way.)

The company explained that the 5 cents a share will comprise "an unfranked final cash dividend of US2.5 cents per share and the undertaking of an on-market share buy-back for US$19.6 million (equivalent in total to US2.5 cents per share)."

"This is in line with the revised distribution policy announced in February 2024, with the total distribution amount for a period allocated approximately 50 percent to a cash dividend and 50 percent to on-market share buy-backs."

The lack of franking means the company’s earnings in the US and elsewhere outside Australia are now greater than in Australia – in fact, the company says Australia now accounts for only 10% of earnings.

 

[divs4ever]

RWC REPORTS RESULTS FOR SIX MONTHS ENDED 31 DECEMBER 2024

SALES RISE 14.8% TO US$676.5 MILLION NET PROFIT AFTER TAX RISES 31.8% TO US$67.2 MILLION

Highlights:
 Net Sales up 14.8% to $676.5 million over the prior corresponding period (“pcp”)
 Adjusted EBITDA1 of US$143.8 million, up 15.2% on pcp
 Adjusted net profit after tax1 of US$76.0 million, up 12.3% on pcp
 Adjusted earnings per share of US9.8 cents per share, up 14.0% on pcp
 Results reflect full period contribution from Holman, acquired in March 2024
 Continued strong cash generation with a reduction in net debt; leverage2 reduced to 1.41 times
 Distribution of 5.0 cents per share: unfranked interim dividend of US2.50 cents per share and on-market share buyback of US$19.5 million
Reliance Worldwide Corporation Limited (ASX: RWC) (“RWC” or “the Company”) today announced
Net Profitafter Tax (“NPAT”) of US$67.2 million for the six months ended 31 December 2024 (up 31.8% on pcp) and Adjusted NPAT of US$76.0 million (up 12.3% on pcp).
Net sales were $676.5 million, 14.8% higher than pcp.
Sales included a 6-month contribution from Holman Industries (Holman) which was acquired on 1 March 2024.
Excluding Holman, and the impact from the closure of the Supply Smart3 sales model in FY24, sales were 3.8% higher than the pcp.
Sales in the Americas were up 3.3% on the pcp, and up 5.4% excluding Supply Smart.
Asia Pacific external sales excluding Holman were up 0.2%on the pcp, and EMEA external sales were 4.6% lower than the pcp.
Operating earnings (EBITDA) for the period were $142.8 million, up 26.8% on the pcp reflecting the earnings contribution from Holman.
Results for the period included $1.0 million in one-off costs mainly related to the integration of Holman and synergies realisation costs.
Excluding these cost items, Adjusted EBITDA was $143.8million, 15.2% higher than the pcp.
Operating margin of 21.3% was up slightly on the pcp.
Excluding Holman, Adjusted EBITDA margin improved to 22.2% compared with 21.2% in the pcp.
Cost savings of $10.8 million were achieved in the period, driven by continuous improvement initiatives, the benefits of the restructuring in EMEA undertaken in FY24, and Holman synergies.
Cash generated from operations was $127.0 million, 16.2% lower than the pcp.
The reduction was mainly due to an increase in net working capital due to a general increase in inventory.
Operating cash flow conversion for the period was 88.3% of Adjusted EBITDA versus 121.5% in the pcp.
1 EBITDA (earnings before interest, tax, depreciation, and amortisation), Adjusted EBITDA, Adjusted NPAT and Adjusted EPS are non-IFRS measures used by RWC to assess operating performance.
These measures have not been subject to audit or audit review.
2 Net debt to Adjusted EBITDA3
In FY24 RWC ceased operating the Supply Smart sales model. Supply Smart was part of the EZ-Flo acquisition in November 2021, selling products direct to plumbers in the US through an online website and a phone sales team. 2
For the six months ended 31 December 2024 a total distribution amount of US5.0 cents per share has been declared, comprising an unfranked interim cash dividend of US2.5 cents per share and the undertaking of an on-market share buy-back for US$19.5 million (equivalent in total to US2.5 cents per share).
RWC Chief Executive Officer Heath Sharp said the result reflected RWC’s ongoing execution focus, a strong contribution from Holman, and robust sales performance despite subdued market conditions in the Americas.
“The seamless integration of Holman into RWC’s Australian operations after acquisition in March 2024 has enabled us to perform strongly in the context of a weak Australian residential construction sector.“
In the Americas, we delivered underlying sales growth of 5.4% which was a good result in light of tough trading conditions.
This was partly as a result of the pull-forward of demand from the second half to the first half due to the timing of future customer initiatives.“EMEA continued to be our most challenging region. It was pleasing to see positive sales growth in Continental Europe, with all markets except Germany outperforming the prior period.
The UK plumbing and heating sector,however, continued to be challenged by weak housing market conditions with RWC’s UK sales down 6.9%.
The team’s operational improvements meant we were able to maintain operating margins despite market weakness.“
We have continued to generate strong cash flows enabling us to further reduce our borrowings.
We ended the period with a significant reduction in leverage to 1.41 times compared with 1.56 times at the end of the pcp,”Heath Sharp said.
For the full 2025 financial year, RWC expects group external sales to be up by mid-single digit percentage points relative to FY24.
Excluding the impact of Holman and Supply Smart, full year group external sales are expected to be broadly flat, within a range of up or down by low single digit percentage points, relative to FY24.
RWC is targeting an improvement in consolidated EBITDA margin (excluding Holman) through cost reduction and efficiency measures.
RWC expects operating cash flow conversion in FY25 to be above 90%, consistent with our long-term target.

Additional information
Please refer to the Appendix 4D, 31 December 2024 Interim Financial Report, Operating and Financial Review(attached) and presentation slides released today for additional information and analysis. These documents should be read in conjunction with this and each other document.

ENDS

i hold RWC