Changes are happening - please bear with us while we update our site.

Changes are happening - please bear with us while we update our site. Click here to give us your advice and feedback.

Reece (ASX:REH) share price soars 19% on HY24 result

The Reece Ltd (ASX:REH) share price jumped more than 17% after reporting its FY24 first-half result which showed more profit growth.

The Reece Ltd (ASX: REH) share price jumped more than 17% after reporting its FY24 first-half result.

Reece is the largest bathroom and plumbing business in Australia.

FY24 first-half result

Here are some of the highlights from the six months to 31 December 2023:

Breakdown

In ANZ, it said sales revenue increased 2% to $1.97 billion, adjusted EBITDA grew 7% to $307 million, statutory EBIT increased 18% to $233 million and adjusted EBIT increased 6% to $233 million.

Over the half-year period, ANZ said five branches relocated, six refurbished, one closed and one new branch opened. At the end of the half if had 655 locations across ANZ, with a pipeline of incremental network activity planned for the second half.

In the US, revenue rose slightly to $1.68 billion amid a subdued trading environment. Adjusted EBITDA rose 6% to US$143 million and adjusted EBIT rose 2% to US$87 million.

Reece has been trying to lift all aspects of the business and building scale. During the half, nine new branches were opened, taking the total to 240 stores. It’s steadily rebranding stores to Reece – it now has 62 branches trading as Reece in six states.

Outlook for the Reece share price

Reece said it’s anticipating a subdued demand environment to continue, with a softening in the Australia and New Zealand region. The medium to long term industry fundamentals remain “supportive”.

The ASX share said its approach remains unchanged, where it outlined three areas.

First, there’s the focus on the customer proposition and being brilliant at the fundamentals. Second, taking a disciplined approach to costs while maintaining the customer proposition. Third, investing through the cycle to build a stronger business.

Overall, I think Reece is proving to be a strong business, with a great management team. The tricky thing is that it’s priced expensively considering the relatively slow growth it’s expecting in the foreseeable future.

I’m happy to wait for a better entry price and to look at other ASX growth shares.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

At the time of publishing, Jaz does not have a financial or commercial interest in any of the companies mentioned.
Skip to content