Learn To Invest
Stocks Special Reports LICs Credit Funds ETFs Tools SMSFs
Video Archive Article Archive
News Stocks Special Reports Funds ETFs Features SMSFs Learn
About

News

Reno market to keep GWA demand strong

Petrina Berry  |  21 Aug 2017Text size  Decrease  Increase  |  

Page 1 of 1

BRISBANE - [AAP] Bathroom and kitchen fittings supplier GWA Group (ASX: GWA) expects residential construction to slow but says a buoyant renovations market should keep demand for its products strong.

The company behind the Caroma brand says the renovations and replacements market, which accounts for just over half of its revenue, will remain "relatively stable" in the current financial year.

"Residential construction activity is expected to slow, however the pipeline of building work yet to be completed remains reasonably strong, supporting continued demand for GWA's brands into the 2018 financial year," the company said as it released its full-year results on Monday.

The group's net profit in the year to June 30 was flat at $53.7 million and revenue edged marginally higher to $446 million during the year to June 30.

GWA said its revenue growth was ahead of the market, with net sales rising 2 per cent after an improvement in bathrooms and kitchens product sales offsetting a decline in its sales of doors and locks compared to a year ago.

Revenue growth was strong across the eastern states, with net sales in NSW up 11 per cent, Victoria up 5 per cent and Queensland up 3 per cent.

While construction markets in Western Australia continued to remain weak, the rate of decline in sales from WA in 2016/17 slowed from the previous year, the company said in its statement to the ASX.

GWA said its sanitary ware products' sales increased 6 per cent on the prior year, helped by the launch of its new range of rimless toilets, called Caroma Cleanflush and new taps, showers, and basin designs.

"GWA continues to focus on selling higher-value products, particularly in the renovations and replacements and commercial segments which resulted in improved mix compared to the prior year," the company said.

Shares in GWA were down 9 cents, or 2.9 per cent, to $3.07 by 1043 AEST.

BATHS & KITCHEN FITTINGS BOOST GWA SALES:

* Net profit flat at $53.7m

* Revenue up 0.4pct to $446m

* Final dividend unchanged at 9.0 cents a share, fully franked

 

AAP logo image

© [2017] Australian Associated Press Pty Limited (AAP) or its Licensors. This is the Morningstar service with content provided by AAP where indicated. AAP reserves all rights, including copyright, in services provided by it. The information in the service is for personal use only, does not constitute financial product advice (whether general or personal) and may not be re-written, copied, re-sold or re-distributed, framed, linked or otherwise used whether for compensation of any kind or not, without the prior written permission of AAP. You should seek advice from a professional financial adviser before making decision to acquire or dispose of a financial product.

This service is published for general information purposes only without assuming a duty of care. AAP is not in the business of providing financial product advice (whether personal or general advice), and gives no warranty, guarantee or other representation about the accuracy of the information or images contained in this service. AAP is not liable for errors, omissions in, delays or interruptions to or cessation of the services through negligence or otherwise. The globe symbol and "AAP" are registered trademarks.