GWA ends year stronger on flat revenues

Bathroom and kitchen fittings manufacturer GWA has increased its net profit on revenues slightly down for the year ended 30 June.

The company which manufactures the Caroma, Methven, Clark and Dorf brands reported statutory net profit up 22.7 percenmt to $43.2 million on group revenue down 1.6 percent to $411.8 million.

Normalised net profit after tax was $44.1 million, down 6.6 percent.

The group said disciplined execution of its strategy and cost management drove an improvement in performance in the second half, with second half EBIT up 6.5 percent on the previous corresponding period.

The company saw strong cashflow generation, with operating cashflow up 101 percent to $99.6 million for the full year.

Managing Director and CEO Urs Meyerhans said the company had delivered a solid result in a rapidly evolving environment that compromised two distinct halves.

Meyerhans said: “The first half of the year was impacted by the decline in activity in the residential renovation and replacement segment, unexpected higher domestic freight rates somewhat offset by lower ocean freight rates and destocking by one merchant.

“GWA initiated a rapid and agile response to these conditions.

“Revenue in the second half increased in Australia and the UK on a constant currency basis but was unfortunately offset by lower sales in New Zealand where the economy is in recession.”

GWA said it expected FY24 to show increasing demand in the commercial sector, a solid level of completions in residential detached construction and subdued demand in residential renovations.

“Within that operating environment GWA will continue its disciplined execution with a strong focus on aligning its cost base to revenue, matching inventory levels to market demand with continued targeted investment in entry level products and customer experience centres across Australia and New Zealand.”

Picture: GWA