Given the challenges of FY 21, this is a reasonable result but...

Given the challenges of FY 21, this is a reasonable result but 'Mr Market' may be unimpressed by the Directors' highlighted sombre medium-term outlook and the decline in margins shown for FY 22 in Australia and the USA.

Fortunately, RWC seems to have some pricing power and has increased prices worldwide to reflect higher costs.

It's encouraging that sales rose markedly in the USA: like-for-like sales growth there was 15 per cent, pretty impressive.

It wasn't good that RWC declined to highlight by how much sales have fallen in the UK, especially since on page 23 it suggests that UK economic conditions, rising interest rates and the duration of any recession are potential headwinds for FY 23. However RWC mentions that sales in that region rose seven per cent in Q4 22, although I assume that just reflects how ranged items have markedly risen in price. Unlikely to be a volume increase in sales if I correctly read the metrics.

The increase in inventories affected some indicators but was (and is) justified. It's a concern though for investors that RWC mentions on page 22:
Further risk of supply chain disruption and potentially higher materials, freight and energy costs as a result of geopolitical
tensions

The rather optimistic assessment by RWC of new residential commencements in Australia doesn't quite match my brief reading of what major developer SGP said, where some buyers are apparently unable to settle purchases. (( don't hold SGP).

The couple of mentions of possible merger and acquisition activity are good, with RWC skilled at integrating immediately accretive businesses.

The marginal change in the dividend is well below the adverse effect of CPI in both Australia and the USA on investors, but no great reason for complaints. Compare RWC to a profitless, poorly run and woke 'iconic' entity like QAN that rarely pays SH any dividend.

EPS declined three per cent, another metric unlikely to be favourably received, but to be fair, companies like RWC in previous years have faced fewer challenges than has been in the case in 2H 20, all of FY 21 and most of FY 22. It hasn't been a 'normal two and a half years by any stretch.