Author Topic: REH  (Read 1520 times)

galumay

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REH
« on: February 23, 2018, 11:33:46 AM »
REH is one of those dream businesses, its always increased profits and dividends over a very long period of time, its tightly held by the founding family and is run like a family business, its enjoyed a competitive moat largely created by simply first rate customer support and service and excellent management. I paid too much to get a position - because when you look back at the share price there is never a good time to buy! It just steadily goes up!

HY1 18 Outstanding HY, Revenue +10%, EBIT +10%, NPAT +10% Divvy +7.5%, passing Go, collect $200, thanks for the rabbits.

Price maker to some extent, competitive advatage is brand, based on above mentioned customer focus and the instore experience.

FY 2018 starting to consolidate the results of the large US acquisition, still way ahead of my conservative valuation but history shows what a consistent wealth creator this business has been so I continue to hold.


Why will this business be around in 10 years? - People will still need plumbing supplies and there will always be a place for premium product. Company celebrated its 100th year last year. Lindy effect!
« Last Edit: May 04, 2021, 07:48:22 PM by galumay »

galumay

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Re: REH
« Reply #1 on: August 26, 2020, 07:22:36 PM »
FY2020 Results of Morsco acquisition really starting to scale in the business, a very solid year given the challenges of Covid. 100 years in business this year. One of Australia's great companies.

galumay

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Re: REH
« Reply #2 on: February 25, 2021, 05:26:00 PM »
H1 2021 further evidence the Morsco merger was one of the rare case of an Aus business successfully expanding into the US. Another solid half considering Covid,

 

galumay

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Re: REH
« Reply #3 on: August 26, 2021, 08:30:11 AM »
FY 2021, ended up being a pretty poor year for REH, once again Covid is the excuse, and no doubt it had some impact, but the integration of Morsco has been poorer than I believed based on H1. On the positive side most of the FCF was spent on reducing the debt and the divvy was increased by 50%


galumay

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Re: REH
« Reply #4 on: March 02, 2022, 11:24:26 AM »
H1 2022 results were good for REH, FCF went negative like many other businesses this year, increased inventory the main reason. Significant progress made on reducing debt, down about $300m.


galumay

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Re: REH
« Reply #5 on: August 23, 2022, 07:04:11 PM »
FY 2022, good result, back to FCF +'ve, paid back a fair whack of the debt, still too high in my opinion but at least moving in the right direction. FCF impacted by big increase in inventories (story of last FY!). All the usual suspects got a run, Covid, inflation, weather, supply chains. Like all the others the Q is, whats structural and whats temporary? Divvies up 25% so thats nice!


galumay

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Re: REH
« Reply #6 on: February 22, 2023, 09:41:14 AM »
Good H1 2023 for REH, impressive resilience to inflation - looks like they have been able to be a price maker.



galumay

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Re: REH
« Reply #7 on: March 01, 2024, 08:41:23 AM »
Not a bad result, bit flat, but the market loved it! For a business of this size I love the simplicity and lack of bullshit with their reports. Particularly notable is the adjusted NPAT for PRP comparison - usually only done by businesses to inflate apparent results, in this case it shows the lower normalised increase relative to adjusted PRP.