By - Neha Simpy
Highlights:
- Adbri Limited (ASX: ABC) ended Thursday, 25 May 2023, rising by 21.874% to AU$1.950.
- ABC published its Chairman and CEO’s address in the Annual General Meeting.
- ABC’s Chairman mentioned last year was an important yet challenging year due to macroeconomic conditions and inflationary pressures.
Manufacturer of cement, lime and dry blended products Adbri Limited (ASX: ABC) ended Thursday, 25 May 2023, rising by 21.874% to AU$1.950 after it published its Chairman and CEO’s address in the Annual General Meeting.
Let’s go through the primary points discussed in the ASX materials company-ABC's AGM.
On Thursday, during the AGM, Chairman Raymond Barro mentioned that 2022 was an important year as the business concluded 140 years. However, it has been one of the most tough years in its company’s history. The results were delivered against the backdrop of a challenging macroeconomic condition which comprised of international economic instability leading to inflationary pressures, along with wet weather events throughout Australia.
Despite the challenges, ABC’s products demand stayed robust, with volume growth delivered throughout most product lines, along with price rise steering 8.4% growth in revenue YoY to AU$1.7 billion.
ABC’s full-year statutory NPAT was AU$102.6 million, whereas the underlying NPAT (excl. Property profits and significant items was AU$77.7 million. This was mainly steered by cost inflation affecting performance, with volatile electricity, gas, and diesel pricing felt throughout the business.
In October last year, ABC paid a 100% franked half-year distribution of 5 cps. Though it did not announce and final dividend on the back of capital requirement for the conclusion of the Kwinana Upgrade Project.
As announced in April, the thorough review of the project has been concluded, with the cost estimate upgraded to be between AU$385 million to AU$420 million. The rise in project cost was led by a sequence of outward causes consisting of the escalating cost of construction, limitations on available labour and supply chain difficulties.
In October, ABC saw leadership transition with Mark Irwin hired an interim CEO to take over from the earlier MD & CEO. He has transitioned from the interim position to turn into ABC’s CEO for a fixed term up to 1 October 2024.
Dianne Mong, has been working with Adbri since initial 2022, has been hired for the designation of Acting CFO. Dean Jenkins was welcomed as the new non-executive independent director, while Samantha Hogg was hired as deputy chair and lead independent director of the company.