Reece Group Strategy Update
18
Cashflow
•
•
Improved operating cash flow.
Net working capital to sales 18%
(FY23: 19%).
Increased investment in priority areas:
branch refurbishments, rebrand, new
stores, fleet and technology.
Interest expense range of $65m - $75m*
expected for full year.
Anticipate ~30%* effective income tax
rate for FY24.
HY24
HY24
HY23
31 December 2023 (A$m)
Adjusted EBITDA
526
488
Net movements in working capital (incl. FX)
4
(186)
Non-cash items and BAC income
(1)
15
Income tax paid
(105)
(90)
Net finance costs
(30)
(24)
Lease interest paid
(16)
(15)
Cash inflow from operations
378
188
Capital expenditure
(115)
(88)
Proceeds from sale of assets
Dividends paid
8
7
(110)
(97)
Cash inflow before acquisitions
161
10
*Estimate is indicative only and based on current drawdowns, interest
and exchange rates (excludes AASB16 Leases interest)
**Estimate is indicative only and subject to US tax adjustment (LIFO)
and repayment of borrowings
Business acquisitions/investments
(1)
(49)
Net repayment of borrowings (including leases)
(193)
(42)
Net decrease in cash
(33)
(81)
Free cash flow
341
139
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