The Reece Ltd (ASX: REH) share price is lifting during the early hours of trading on Wednesday following the release of its FY22 results. At the time of writing, the Reece share price is up 3.59%, trading at $15.74.
The company actually posted its earnings after market hours yesterday, leaving investors to digest the news overnight and into this morning.
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Reece share price lifts alongside revenue, profit
Key takeouts from the company's 12 months include:
- Sales revenue up 22% year on year to $7.65 billion for the year
- Adjusted EBITDA up 16% from the previous year to $838 million
- Net profit after tax (NPAT) climbed another 37% to $392 million from last year's $286 million
- Earnings per share (EPS) growth of 37% surmounting to 61 cents per share
- Fully franked final dividend of 15 cents per share, up 25%
What else happened for Reece last period?
There was growth from top-to-bottom throughout Reece's income statement for FY22. Revenue jumped 22% whilst NPAT followed suit with a 37% year-on-year gain.
In its Australia and New Zealand operations, sales revenue increased by 12% to $3.5 billion, up from $3.15 billion in FY21.
Meanwhile, Reece also continued its initiatives to bring the Reece brand into the US market, growing its footprint to 204 stores and refurbishing another 11 stores during the year.
With the 37% gain in EPS, the board was able to authorise a final dividend of 15 cents per share, recorded on 12 October, payable on 26 October 2022.
Management commentary
Speaking on the results, Reece Group CEO, Peter Wilson said:
We have navigated another year of disruption and change in FY22 to deliver a very strong result, demonstrating the resilience of our business. Despite being hit by ongoing challenges, the team successfully navigated the ongoing pandemic, supply chain constraints and natural disasters to continue delivering for our customers, who were busier than ever.
Looking ahead, we believe we are past the peak of the cycle in our end markets and are prepared for
softening conditions. The macro setting is complex and will require careful management, but Reece has a strong track record of managing and investing to improve its business through the cycle.
Reece share price snapshot
In the last 12 months, the Reece share price is down more than 36% or 41% this year to date.
Despite its struggles, it has continued to gain over 8% in the past single month of trade.
