Reliance Worldwide (ASX:RWC) sees marginal revenue growth to US$1.25 B in FY24

Reliance Worldwide reported a slight increase in revenue from ordinary activities for FY24, amounting to US$1.25 billion ($1.86 billion), a 0.2% rise from the prior year.

The increase was driven in part by the acquisition of Holman Industries in March.

However, net profit after tax attributable to members fell 21.2% to US$110.1 million ($163.6 million), down from US$139.7 million ($207.5 million) in FY23.

Adjusted earnings before interest, tax, depreciation, and amortisation remained stable at US$274.6 million ($407.9 million), with no change compared to FY23.

The reported net profit before tax was US$156.5 million ($232.4 million), an 18.1% decrease from the previous year's US$191.2 million ($284 million).

The company achieved cost savings of US$23 million ($34.2 million) due to various restructuring initiatives and reported a 7% rise in cash flow from operations to US$314.2 million ($466.7 million).

Phil King, group investor relations director at Reliance Worldwide, stated, "The financial results reflect a challenging operating environment, but the stability in our adjusted EBITDA demonstrates the resilience of our underlying business model."

The company has proposed a total dividend of 9.5 US cents (14 Australian cents) per share for FY24, matching the distribution amount from the previous year.

Shareholders can expect the final dividend to be paid on Oct. 4, with the record date set for Sept. 6.

Reliance Worldwide expects group external sales to remain relatively flat in the first half of FY25, with anticipated cost reduction and efficiency measures targeting an improvement in consolidated EBITDA margin.

The company's decision aligns with its revised capital management strategy to balance cash dividends and share buy-backs.