Reliance Worldwide hits three-year high
Reliance Worldwide Corporation rose 1% following its latest trading update to take the global supplier of plumbing and heating industries to a three year high. In the March quarter update, RWC reported net sales of $359.4 million, 14% higher than the prior period.
While sales were negatively impacted by the strength of the Australian dollar, on a constant currency basis, net sales were up 27%. Strong growth was recorded in all regions, reflecting buoyant demand for plumbing products, driven by increased spending on residential repairs and remodelling in particular.
A significant weather freeze event in the US in February also boosted demand for plumbing supplies in the quarter, with estimates that the impact of the freeze event accounted for over half of the sales increase in the Americas for the quarter.
Sales in APAC were driven by continued strength in the residential new construction market in Australia and growth in remodelling activity. Export sales to the Americas were up strongly, while the EMEA has continued to record a strong rebound in sales due to the growth in UK plumbing and heating arising from increased repair and remodel activity, as well as increased exports of FluidTech products to the Americas and APAC regions.
Sales to date are substantially ahead of the same period last year, with pcp sales having been adversely impacted by COVID‐19.
RWC is also continuing to implement price rises for products that have seen sustained input cost increases, particularly brass products which have been impacted by higher copper and zinc costs. The company is confident it will be able to pass on the impact of metal commodity and other cost increases through price adjustments.
RWC Group Chief Executive Officer, Heath Sharp, said RWC had continued to perform strongly in the third quarter of the 2021 financial year. “All our major markets are benefitting from increased household spending on repairs and remodelling activity, and Australia is also benefitting from increased new house building activity. The winter freeze event in the southern US in February also boosted sales in the quarter, with freeze‐associated purchasing activity flowing right the way through March and into April.”