Gwa Group Limited · ASX:GWA
Gwa — H1 FY2025 Earnings Presentation
35 slides from Gwa's earnings presentation, Feb 17, 2025
Slide 1: ASX Announcement – Financial results presentation for the half year
17 February 2025 ASX Announcement GWA Group Limited – Financial results presentation for the half year ended 31 December 2024 GWA Group Limited (GWA) attaches the following document for immediate release to the market: “Results Presentation – Half Year ended 31 December 2024”. On 17 February 2025 at
Slide 2: GWA Results Presentation Half Year ended 31 December 2024
GWA Results Presentation Half Year ended 31 December 2024 17 th February 2025 Confidential
Slide 3: Our Presenters Today
Our Presenters Today Urs Meyerhans Calin Scott Craig Norwell Managing Director and CEO Group Chief Financial Officer Group Executive - Sales Confidential
Slide 4: Agenda
Agenda 01 Overview 02 Group Financial Results 03 Business Performance 04 New Products 05 Strategic Update 06 Summary & FY25 Outlook 07 Q&A Appendix Confidential
Slide 5: 1. Overview
Made For Life GWA Group Limited
Slide 6: Volume growth in challenging markets FY25 H1 Headlines
Financial Business Summary & Overview New Products Strategy update results performance FY25 Outlook Volume growth in challenging markets • Performance FY25 H1 v FY24 H1 • Group volume growth of 3.4% • Group revenue increased 1.9% • Group Normalised EBIT up 3.2% FY25 H1 Headlines • Increase in fully
Slide 7: Commitment to safety
Financial Business Summary & Overview New Products Strategy update results performance FY25 Outlook Commitment to safety • Worker insights (lead indicator) continue to increase as a result of improved safety culture that celebrates open and transparent reporting • Continued focus on building capabil
Slide 8: 2. Group Financial Results
2. Group Financial Results Confidential
Slide 9: Revenue and EBIT growth in challenging markets
Financial Business Summary & Overview New Products Strategy update results performance FY25 Outlook A$m Normalised1 1H FY25 1H FY24 % Change Revenue 209.90 206.00 1.9%0 EBITDA 46.30 46.90 -1.2%0 Revenue and EBIT growth in challenging markets EBIT 38.50 37.30 3.2%0 EBIT Margin % 18.3%0 18.1%0 0.2pp0
Slide 10: Controlling the Controllables
Financial Business Summary & Overview New Products Strategy update results performance FY25 Outlook Normalised1 EBIT Bridge (A$M) Controlling the Controllables • Underlying EBIT improvement of 3.2% on prior half. 39.0 1.2 3.2 38.5 37.3 • Volume: group increase of 3.4% due to AU and UK, partially 37.
Slide 11: Strong cash flow from operations
Financial Business Summary & Overview New Products Strategy update results performance FY25 Outlook Cash flow from Operations A$M FY25 FY24 Strong cash flow from operations EBITDA 46.3 46.9 Net movement in Working Capital 6.1 14.4 • Cash Conversion 116% due to disciplined working capital Other 1.3 (
Slide 12: FY25 interim dividend of 7.5c per share fully franked
Financial Business Summary & Overview New Products Strategy update results performance FY25 Outlook FY25 interim dividend of 7.5c per share fully franked Dividends – cents/share 8.0 8.0 6.5 7.0 7.0 7.0 7.5 6.0 6.0 FY21 FY22 FY23 FY24 FY25 Final ordinary Interim ordinary 11 Confidential
Slide 13: Strengthening Financial Position
Financial Business Summary & Overview New Products Strategy update results performance FY25 Outlook Metrics1 30 June 30 June 30 June 2021 2022 2023 30 June 2024 31 Dec 2024 Strengthening Financial Position Net Debt (A$M) 104.8 138.2 117.0 97.0 92.3 Leverage Ratio (times) • Net debt at lowest level i
Slide 14: 3. Business Performance
3. Business Performance Confidential
Slide 15: Revenue up on FY24 H1
Financial Business Summary & Overview New Products Strategy update results performance FY25 Outlook Revenue up on FY24 H1 H1 FY25 Revenue Revenue commentary FY25 H1 v FY24 H1 $ Revenue & % of Group AUD H1 FY24 H1 FY25 Australia AUD $m $m 171.6 175.8 • Disciplined execution of strategy with focus on
Slide 16: Revenue by State (AU)
Financial Business Summary & Overview New Products Strategy update results performance FY25 Outlook Revenue by State (AU) Strong performance across Australia NSW A$m Revenue 1H FY25 1H FY24 ∆ LY % Change o Growth in Maintenance Plumbers and Care unable to offset slowing detached NSW 57.5 60.2 (2.7)
Slide 17: Revenue by Merchant (AU)
Financial Business Summary & Overview New Products Strategy update results performance FY25 Outlook Revenue by Merchant (AU) Customer A vs PcP Customer B vs PcP Overall growth in merchants with 3 of top 4 merchant partners increasing on FY24 H1 1QFY25 2QFY25 1HFY25 1QFY25 2QFY25 1HFY25 16.2% 9.0% o
Slide 18: 4. New Products
4. New Products Confidential
Slide 19: Innovative NPD launches for residential, commercial, and entry-level markets
Financial Business Summary & Overview New Products Strategy update results performance FY25 Outlook Innovative NPD launches featuring cutting-edge design and technology for residential, commercial, and entry-level markets • Expansion of entry-level range to meet the growing ANZ needs for cost-effect
Slide 20: Expansion into advanced technology to streamline water hygiene maintenance
Financial Business Summary & Overview New Products Strategy update results performance FY25 Outlook Expansion into advanced technology to streamline water hygiene maintenance process • Upcoming launch of Smart Thermal Disinfection technology to reduce dependance on current labour-intensive industry
Slide 21: 5. Strategy Update
5. Strategy Update Confidential
Slide 22: Strategy: Win The Plumber remains a focus
Financial Business Summary & Overview New Products Strategy update results performance FY25 Outlook Strategy: Win The Plumber remains a focus Making life better through innovation in Our 2027 Strategy everyday water experiences • Affirming continued commitment to Win the Plumber • Embedding focus on
Slide 23: Good Progress on Strategy
Financial Business Summary & Overview New Products Strategy update results performance FY25 Outlook Good Progress on Strategy Win the Plumber o AU Plumber Bundle and Spares parts sales growth +13% on PcP Strategic Initiatives Progress1 o Strong adoption of Plumbers Hub Win the Plumber o WTP mileston
Slide 24: 6. Summary & FY25 Outlook
6. Summary & FY25 Outlook Confidential
Slide 25: Continued volume growth in FY25 H1 Summary
Financial Business Summary & Overview New Products Strategy update results performance FY25 Outlook Continued volume growth in FY25 H1 • FY25 H1 – solid results in challenging market conditions o Delivery of volume, sales and EBIT growth, primarily due to AU and UK results. Summary o Controlling the
Slide 26: Group Outlook FY25
Financial Business Summary & Overview New Products Strategy update results performance FY25 Outlook Group Outlook FY25 Region Commentary % of Group Sales • Mixed outlook for most market segments Australia • Solid demand in Health and Aged care projects 84% • Promising progress with Plumber bundle an
Slide 27: Australia FY25 Outlook
Financial Business Summary & Overview New Products Strategy update results performance FY25 Outlook Australia FY25 Outlook Market segment GWA Focus Link to Strategy Commercial, new office build activities Care depressed, somewhat offset by positive • Health and Aged care projects outlook in health c
Slide 28: 7. Q&A
7. Q&A Confidential
Slide 29: Disclaimer
Disclaimer o This Presentation contains projections and other prospective statements that represent GWA's assumptions and views, including expectations and projections about GWA's business, the industry in which it operates and management’s own beliefs and assumptions. Such matters require subjectiv
Slide 30: 8. Appendix
8. Appendix Confidential
Slide 31: FY25 Key Assumptions
FY25 Key Assumptions 1 Area Assumption Australian market backdrop BIS total building activity data2 is indicating a market decline of -1% in FY25 (constant prices) Price increase ~4% implemented in Australia and UK from 1 February 2025 D&A (depreciation and amortisation) ~$4.0 - 6.0m excluding the i
Slide 32: Caroma remains our leading brand
Caroma remains our leading brand Segment Category Project Basins, Sinks, Tubs & Baths 24% Sub-Segment1 Resi 18% 17% Taps & Showers 37% Valves & Other 2% Multi-Res 5% R&R Merchant Builder 57% 61% Commercial 15% Sanitaryware 21% 43% Geography Brand Clark, 8% New Zealand 8% Methven, 7% Australia Intern
Slide 33: Australian Market Context: Quantity Completed Annually
Quantity Completed Annually 32 100,000 120,000 140,000 0 20,000 40,000 60,000 80,000 FY-2000 FY-2001 FY-2002 FY-2003 FY-2004 FY-2005 FY-2006 FY-2007 FY-2008 FY-2009 FY-2010 FY-2011 Actual FY-2012 FY-2013 FY-2014 FY-2015 Forecast Residential¹ FY-2016 FY-2017 FY-2018 FY-2019 ¹ Approximately 17% of GWA
Slide 34: Australian Market Context: Approved Annually
$m Work Done 33 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 FY-2001 FY-2002 FY-2003 FY-2004 FY-2005 FY-2006 FY-2007 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 Actual FY-2013 FY-2014 FY-2015 FY-2016 Forecast FY-2017 Commercial¹ FY-2018 FY-2019 FY-2020 FY-2021 ¹ Approximately 21% of GWA’s Australi
Slide 35: Thank you
Thank you GWA Results Presentation Half Year ended 31 December 2024 17th February 2025 Confidential