Supply chain disruptions, raw materials shortages and increased demand hurt sales in GWA Group (ASX:GWA)
The company’s revenue grew 2.1 per cent to $201.3 million, while EBIT increased 1 per cent to $30.2 million. The bathroom fittings company declared its highest dividend in two years despite this slight lift.
GWA said the increase in group revenue reflects improved Australian market activities partly offset by the five-week market shut down in New Zealand and lower international sales.
The board will pay an interim dividend of 7 cents per share, fully franked, compared to 6 cents per share on the prior corresponding period.
“We experienced the ongoing impacts of the pandemic during the half, including construction site shutdowns, merchant closures and global freight disruptions and a 5 week New Zealand shutdown," said chief executive officer Urs Meyerhans.
“We have proactively managed our response to these challenges by ensuring the ongoing stability and efficiency of our supply chain, remaining disciplined on operational costs and managing our working capital and cash flow accordingly."
“That focus enabled the group to deliver an improved financial performance for the half, including a strong uplift in EBIT margin and increased dividend, despite global freight disruptions leading to a delay in sales for the half.”
Shares in GWA Group (ASX:GWA)
are trading 3.5 per cent lower at $2.51.