Fletcher Building Limited (FBU): How will it perform in 2022?

Highlights

• Fletcher Building posted impressive results for FY21, with enhanced earnings for the year.
• It rewarded its shareholders by distributing a total of 30.0 cps in FY21.
• The Company, with a clear strategy, looks positive to deliver future performance and growth. 

Fletcher Building Limited (NZX:FBU; ASX:FBU) is New Zealand’s prominent company that focuses on home building, construction and infrastructure projects. 

Do Read: Why to explore the 5 fastest growing NZX stocks in 2022? 

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 Know FBU’s FY21 performance 

FBU delivered solid FY21 results with increased revenue amounting to NZ$8,120 million for the year ended 30 June 2021 as compared to NZ$7,309 million for the previous year. 

Underpinned by significant work carried out by the Company in recent times to simplify its business operations, Fletcher Building’s NPAT stood at NZ$305 million for the reported period after delivering a loss in FY20. 

Further, FBU boasts a strong balance sheet with debt amounting to NZ$173 million and liquidity worth NZ$1.6 billion. 

Did the Company pay a dividend? 

Owing to its solid earnings in FY21, Fletcher Building paid a final dividend of 18.0 cps in September 2021. 

Also, it had paid an interim dividend of 12.0 cps earlier, thus taking the full-year dividend to 30.0 cps. 

FBU’s New Zealand Distribution division to remain with the current CE 

A few days ago, the Company announced that Teresa Rendo who was supposed to take up the role of FBU’s Chief Executive had withdrawn from the role citing personal reasons. 

Hence, Bruce McEwen remains FBU's Chief Executive for its NZ distribution division. 

The Company's management has acknowledged Bruce's astute leadership under which, FBU's distribution business has delivered strong momentum, and has established a solid platform that is in line with its growth strategy.  

A little about FBU’s future plans 

The Company is consistent in its approach to make targeted investments and has a strong activity pipeline, particularly in the residential sector. 

Must Read: What is reflecting growth opportunities in Fletcher’s (NZX:FBU) pipeline? 

Despite the pandemic, ongoing supply chain and labour constraints, FBU foresees an extended period of solid building activity through this year as well as beyond. 

Moreover, Fletcher Building continues to strive for increased operational performance by making value-enhancing growth investments, thus delivering enhanced results for all its stakeholders, including its investors. 

Also Read: Fletcher (NZX:FBU): What is COVID-19 impact on FY22? 

It is noted that the Company will release its half-year performance, ended 31 December on 16 February. 

Bottom Line  

Fletcher Building Limited maintains a solid balance sheet position and is optimistic about delivering enhanced growth and performance. 

On 24 January, at the time of writing, Fletcher Building was down by 2.26% at NZ$ 6.910.