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Profits down slightly as supply challenges force RWC to increase prices

Manufacturing News

Plumbing supplies company Reliance Worldwide Corporation announced a 12.4 per cent increase in revenues for the half-year to December to $US 522 million.

The ASX-listed manufacturer reported its half-year results on Monday, with pre-tax profit $US 92 million (down 3.1 per cent on the corresponding period) and net profit $US 63.7 million (down 3.3 per cent.) 

“We were able to consolidate our volumes following a period of exceptional growth in 2021. Importantly, we were able to meet our customer’s service and delivery expectations despite the increased incidence of COVID and supply chain challenges,” said CEO Heath Sharp in a statement.

The company undertook price rises in the half-year, which “substantially offset” inflation in commodity prices for inputs such as including copper, resins, and steel, as well as in freight, packaging and energy.

Overall revenues were assisted by the acquisition of US connector business EZ-FLO and home construction and remodelling activity, the company said in a statement.

The company’s Americas segment recorded growth of 15 per cent (including EZ-FLO) with underlying growth in sales of 12 per cent without it and adjusting for a one-off distribution logistics change by a key US channel partner.

RWC has its beginnings in the 1980s as an Australian-focussed operation, and listed on the ASX in 2016. It began reporting in US dollars this financial year.

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