Supplier update: RWC plumbing
Reliance Worldwide reports dip in profit
RWC grew its product portfolio with the acquisition of EZ-FLO International, makers of EZ-FLO[tm] and Eastman[tm] products, in 2021
Fri Mar 04 2022
Plumbing supplies group Reliance Worldwide Corp. (RWC) experienced a 3% dip in net profit in the first half of the financial year despite price rises and continuing demand for its products.
The Melbourne-based, global company said it generated a USD63.7 million net profit, down from USD65.9 million in the same six-month period in the prior year.
The decrease in profit came despite a 12% lift in net sales to USD521.8 million, with a 15% lift in the Americas and 11% growth in the Asia-Pacific. In The Australian, CEO Heath Sharp said:
We continued to experience robust market conditions and demand for our products. The trend of increased spending on home remodelling activity, coupled with strong new residential construction markets, has underpinned record levels of demand.
We were able to consolidate our volumes following a period of exceptional growth in 2021. Importantly, we were able to meet our customers' service and delivery expectations despite the increased incidence of COVID and supply chain challenges.
Reliance, pushed up its average prices by more than seven per cent. Mr Sharp said:
We have acted decisively to address input cost pressures now being experienced, principally through passing on higher prices, cost control and operational savings.
EZ-FLO acquisition
The company is still bedding the down its acquisition of US business EZ-FLO that was announced in November 2021.
EZ-FLO makes plumbing supplies and specialty plumbing products and was established in 1980. It purchased the Eastman brand in 2000 which is known for its appliance connectors, supply lines, stop valves and gas connectors. The Eastman brand helps to position RWC as a leader in appliance connectors, including plumbed appliances, gas, hot water and dryer venting. At the time, EZ-FLO president Paul Wilson said:
The EZ-FLO Eastman legacy is one of growth through entrepreneurship, quality, relentless customer service, and brands our customers trust.
In joining RWC, we're aligning with a likeminded partner to further accelerate growth and expand our capabilities to benefit our customers and the trade as a whole throughout North America and Latin America.
RWC's family of brands includes SharkBite[tm] push-to-connect plumbing solutions, HoldRite[tm] engineered plumbing and mechanical solutions, Cash Acme[tm] control valves and John Guest[tm] fittings and fluid dispense products.
Related:
Reliance Plumbing buys US business - HNN Flash #69, November 2021