What’s up with Brickworks’ (ASX:BKW) shares post AGM update?

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 What’s up with Brickworks’ (ASX:BKW) shares post AGM update?
Image source: © Fotogigi85 | Megapixl.com

Highlights

  • Brickworks’ shares were trading in the green post positive AGM results.
  • The company achieved a record underlying NPAT of AU$746 million for FY22.
  • Brickworks generated AU$1.093 billion in revenue with strong growth in North America.

Shares of Australian brick manufacturer Brickworks Limited (ASX:BKW) were trading 0.765% higher on the ASX following the release of its annual general meeting (AGM) results. One share of Brickworks was priced at AU$21.050 as of 11:45 AM AEDT, 22 November 2022.

As stated in the AGM, Brickworks generated a record underlying net profit after tax (NPAT) of AU$746 million for FY22; this was 159% higher than the previous comparable period.

Meanwhile, the increase in Brickworks’ shares was in line with the positive performance of the benchmark S&P/ASX 200 Materials sector. INDEXASX:XMJ was at 17129.2 points with a gain of 122.6 points as of 11:45 AM AEDT.

How did 88th AGM play out for Brickworks?

The Brickworks management stated during the AGM that FY22 acted as a landmark year for the company as it has generated higher earnings across all four divisions. Below are the key takeaways from Brickworks’ official AGM results:

  • During FY22, the company’s underlying NPAT was AU$746 million, and the statutory NPAT was AU$854 million, including significant items and discontinued operations.
  • Brickworks’ statutory NPAT was 257% higher than the previous corresponding period.
  • In July this year, the manufacturer launched the Brickworks Manufacturing Trust to kick off the value of its land assets.
  • As per the ASX report, Brickworks’ final dividend has increased to 41 cents per share (fully franked) and is set to be paid to the shareholders on 23 November 2022.
  • With this increased dividend, the company’s full-year dividend is now 63 cents per share (fully franked), 3% higher than the prior comparable period.
  • During the AGM, the company focused on energy security with its initiatives to reduce gas consumption and carbon emissions.
  • For FY22, the overall recordable injury rate (injuries per million hours worked) fell from 14.3 in FY21 to 11.7 in FY22.
  • Brickworks’ revenue of AU$1.093 billion for FY22 is 28% higher than FY21, while the company’s EBITDA increased by 133% to AU$1.058 billion in the fiscal year.
  • During FY22, the company entered into a strategic partnership with FBR Limited (ASX:FBR) to address skill shortages and labour issues while increasing the speed of the bricklaying process.
  • The net value of Brickworks’ industrial JV Trust assets increased to AU$1.5 billion with a gain of AU$632 million throughout the year.
  • During FY22, Brickworks set foot in the UK market via signing a supply agreement with Brickability, a construction sector supplier of facing bricks in the UK.
  • Brickworks has partnered with Goodman Group for two Joint Venture Property Trusts with a combined net asset value of about AU$1.8 billion. This consists of a 50% stake in the Industrial JV Trust and a 51% stake in the Brickworks Manufacturing Trust.

In a statement, Robert Millner, chairman of Brickworks Limited, said:

Image Source: © 2022 Kalkine Media ®

Data Source: Company announcement dated 22 November 2022

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