Full Year 2024 GWA Group Ltd Earnings Call Transcript
Key Points
- GWA Group Ltd (ASX:GWA) reported volume growth with Australian volumes up 3.8% and UK volumes up 4.3%.
- Normalized Group EBIT increased, leading to a higher normalized Group EBIT margin.
- Strong cash generation with a cash conversion ratio of 110% for the year.
- Net debt is at its lowest level in five years, enabling a 14% increase in the final dividend to $0.08 per share.
- Successful launch of new products and improved customer service metrics, such as DIFOT and NPS.
- The New Zealand market remains challenging, with a revenue decline of 16.5% from the prior year.
- Significant items for FY24 amounted to $9.7 million pre-tax, including restructuring costs in New Zealand and ERP implementation costs in the UK.
- Unfavorable product mix driven by customers seeking more affordable products impacted overall profitability.
- The average Australian dollar to US dollar exchange rate decline negatively impacted stock purchases and balance sheet revaluation.
- Softening market conditions in the second half of the year, particularly in the residential detached segment with approvals at a 10-year low.
Thank you. Good morning, everyone. Thank you for joining us on the webcast or conference call for GWA's result for the financial year '24. My name is Urs Meyerhans, I'm GWA's Managing Director. Joining me today are Calin Scott, our Group's CFO; and Craig Norwell, our Group Executive for Sales.
We look forward to talking further with many of you over the coming days and weeks. Having started with an overview of our Group result and key themes, including an update on our safety performance. Calin will discuss the Group financial results for the year, including P&L, cash flow and balance sheet. Craig will then provide an overview of our business performance, including our key Australian merchants and end markets revenue results.
I will conclude today's presentation with an update on new product and how we continue to evolve and refresh our strategy and provide a summary and outlook for financial year '25. As always, we are happy to answer your questions at the end of the presentation.
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