Today, the Reliance Worldwide Corporation Aus P Ltd (ASX: RWC) share price jumped higher following the release of a solid set of half year profit figures.
Here are the key takeaways from the Reliance Worldwide report:
- Revenue came in at $283 million, up 4%
- Net profit was $35 million
- Profit before taxes and interest charges was $55 million, up 19%
Reliance Worldwide is a $1.5 billion company engaged in the design and manufacture of products for plumbers. The company's leading product is SharkBite, an easy-to-use device connecting 'behind the wall' piping.
Reliance was the largest company to list on the ASX in 2016. Its products are sold in the USA, Australia and throughout the world. In the USA, The Home Depot (THD) is the company's largest retailer.
"THD remains RWC's largest customer globally and we remain committed to continuing to support it with industry leading delivery, service and execution capabilities and innovative new products and solutions for plumbers," CEO Heath Sharp said.
"RWC strongly believes that adding SharkBite to additional USA retail outlets will drive PTC growth and adoption, create stronger brand awareness and provide a larger and more diversified growth platform for the benefit of all distributors moving forward, including THD."
The Americas market accounts for almost two-thirds of gross profit.
Looking ahead, the company sees continued growth in SharkBite sales throughout North America, with distribution to Lowe's having recently commenced.
Should you buy Reliance Worldwide shares in 2017?
Reliance Worldwide appears to have a bright future ahead. However, it shares change hands around 21 times profits, which says to me that the market may be clicking on (pun intended) to its potential. I think it is worth running the ruler over Reliance shares in 2017.
