GWA Group (GWA) Trading Update summary

Trading performance and strategic initiatives

• Achieved volume growth in Australia and the UK to end of May 2024, despite challenging market conditions.

• Launched entry-level products and targeted maintenance plumbers, supporting volume gains.

• New Zealand revenue declined due to recession and construction market downturn.

Financial outlook and guidance

• FY24 Group revenue expected at $411.0–$413.0 million, similar to FY23 ($411.9 million).

• Normalised Group EBIT forecasted at $73.0–$74.0 million, up from FY23 ($70.4 million).

• Group earnings growth anticipated for FY24 when normalised for significant items.

Significant items and operational changes

• Pre-tax significant items for FY24 estimated at $9.6–$10.6 million.

• Right-sizing New Zealand business to align with market, incurring $6.0–$7.0 million mostly non-cash cost.

• $1.4 million in UK ERP implementation costs and $2.2 million for digital platform enhancements.