Fletcher Building has posted a full year net profit after tax of $305 million following a $196m loss the previous year.
Revenue was $8.12 billion for the year to June 30, up from $7.3b in FY20.
EBIT before significant items was $669m and the company declared a final dividend of 18 cents per share bringing the full-year FY21 dividend to 30cps.
The company is reporting a strong balance sheet with net debt of $173m and liquidity of $1.6b.
Company revenue was underpinned by solid construction levels across New Zealand and especially in transport and water sectors, it says.
Gross revenue from its distribution division was $1.7b, up from $1.4b the previous year. Construction gross revenue was $1.4b, up from $1.3b the previous year.
Its Placemakers business unit saw a transport management system go live across the branch network, order and delivery tracking. It’s managed by a centralised team to drive higher performance.
Chief executive Ross Taylor says the result reflects the significant work carried out over the past three years to “reset and simplify the business”.
“We are confident we have a sustainable base from which we can drive further performance improvements and growth,” he says.
“We continue to make targeted investments to deliver on our strategy.”
“This includes a mix of capital and operating spend, and remains focused in three areas: key maintenance investments, such as the new Winstone Wallboards plasterboard facility; initiatives which support our sustainability ambition, such as the waste tyre recycling facility at our cement plant; and growth investments in product adjacencies and digital capabilities.
“As we look ahead, we believe that the economic trends in our key markets remain supportive for further growth.
“In New Zealand, the activity pipeline continues to look ‘stronger for longer,’ especially in the residential sector.
“With ongoing supply chain and labour constraints having the effect of smoothing the recent sharp rises in building consents over a longer period, this is likely to mean an extended period of solid building activity through FY22 and beyond.
In Australia, the residential outlook also remains resilient, particularly across detached housing and renovations, while the apartments, commercial and key civil sectors are likely to stabilise at current levels.
“There does remain some uncertainty around the impact of COVID-19 on activity in our markets. We will continue to monitor and manage this closely.
“Overall, the combination of a clear strategy, a favourable market outlook and a strong balance sheet means Fletcher Building is well-positioned to deliver future performance and growth.
“Finally, there’s no doubt that the past year has seen many challenges and disruptions resulting from the global pandemic. Against this backdrop, I would like to thank our more than 14,500 people who have delivered this performance while remaining focused on supporting our customers and each other,” Taylor says.
