Boral Reports Decline in Annual Net Profit
Boral announces a decrease in annual net profit due to asset sale, but highlights improved earnings and anticipates further growth.
Boral, the leading building materials supplier in Australia, has announced a decline in its annual net profit primarily due to a previous asset sale. However, the company remains optimistic as it highlights improved underlying earnings from continuing operations and anticipates further growth in the coming year.
For the 12 months ending June 30, Boral's net profit stood at AUD 148.1 million, representing an 85% decrease compared to the previous year. This decrease can be attributed to a substantial gain recorded from the sale of its North American building-products business during the same period.
As a result, the board of directors has decided against paying a final dividend.
Nonetheless, Boral reported a significant increase in net profit before significant items from continuing operations, rising to AUD 142.7 million from AUD 35.3 million in the previous year. In addition, earnings before interest and tax (EBIT) from continuing operations and before significant items reached AUD 231.5 million for fiscal 2022, compared to AUD 112.2 million in the previous year.
Boral's Chief Executive, Vik Bansal, expressed his satisfaction with the company's performance, stating, "We have witnessed volume growth across all our products while maintaining a disciplined approach to pricing, cost control, and cash management."
The company attributes its success to raised product prices and a strong focus on cost optimization. These factors have helped mitigate the impact of inflationary pressures and contributed to an expanded full-year EBIT margin of 6.7%, a significant improvement compared to 3.8% in the previous year.
Looking ahead, Boral expects its underlying EBIT for fiscal 2024 to range between AUD 270 million and AUD 300 million.