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Reece Limited Faces Revenue Decline Amid Strategic Expansion

Story Highlights
  • Reece Group is a major distributor of plumbing and HVAC-R products in Australia, New Zealand, and the US.
  • Reece Limited reports a 3% revenue decline in FY25 H1 amid strategic investments and branch expansions.
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Reece Limited Faces Revenue Decline Amid Strategic Expansion

Reece Limited ( (AU:REH) ) has shared an update.

Reece Limited’s financial results for the first half of FY25 indicate a challenging market environment, with a decline in key financial metrics. Despite a 3% reduction in sales revenue to $4.4 billion, the company continues to invest in its business, notably through acquisitions and branch expansions in ANZ. The net profit after tax (NPAT) fell by 19% to $181 million, with operational costs rising due to inflation and continued business investments. The expansion included 14 new branches in ANZ, reflecting Reece’s focus on long-term growth amidst current economic pressures.

More about Reece Limited

Reece Group is a leading distributor of plumbing, waterworks, and HVAC-R products, serving both commercial and residential customers through over 900 branches across Australia, New Zealand, and the United States. Established in 1920 and listed on the Australian Securities Exchange, the company employs approximately 9,000 people committed to improving service delivery.

Technical Sentiment Consensus Rating: Strong Sell

Current Market Cap: $9.01B

For a thorough assessment of REH stock, go to TipRanks’ Stock Analysis page.

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