Waterco (WAT) H2 2024 earnings summary

Executive summary

• FY24 marked a transformational year with the acquisition and integration of Davey Water Products, driving significant revenue and earnings growth.

• Sales revenue surged 85% to $239.1m, with underlying EBITDA up 59% to $34.5m and underlying NPAT up 35% to $14.6m year-over-year.

• Net profit after tax increased 28% to $13.85m compared to the prior year.

• Dividend per share increased 50% to 15c, reflecting strong financial performance and positive outlook.

• A $1 million share buyback was announced post-balance date.

Financial highlights

• Operating revenue rose 83% to $244.8m; sales revenue up 85% to $239.1m compared to FY23.

• Underlying EBIT increased 60% to $23.2m; underlying EBITDA up 59% to $34.5m.

• Net profit attributable to members was $13.91m, up 28.2% year-over-year.

• Basic and diluted EPS rose to 39.5 cents from 30.7 cents last year.

• Net operating cash flows increased to $24.5m from $11.2m.

Outlook and guidance

• Focus on increasing market share in Pool & Spa, further synergies from Davey, and geographic expansion.

• Continued investment in products, technology, and optimising distribution networks.

• Anticipated further margin improvements and operational cash flow to support debt reduction in FY25.

• Consideration of further M&A opportunities once Davey integration is complete.

• The Board will provide profit guidance for FY25 at a later stage as more information becomes available.