Reece Group Strategy Update slide image

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 Reece. Works for you.
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