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Highlights
- Fletcher Building unveils robust performance in the six months ended 31 December 2021.
- Its NPAT rose by 41% on HY21, despite facing COVID-19-related uncertainties.
- FBU plans to reward its shareholders by paying 18.0 cps as an interim dividend in April 2022.
Fletcher Building Limited (NZX:FBU; ASX:FBU) today released its HY22 results, posting a solid performance during the period.
Source: © 2022 Kalkine Media® data source- EODHD/Others
FBU delivers a power-packed interim performance
For the half-year ended 31 December 2021, the Company reported revenue of NZ$4,064 million, up 2% on HY21 and an NPAT of NZ$171 million, which climbed by 41% on the prior period, bolstered by improved operational performance and prudent cost management approach.
Further, FBU recorded a 3% rise in its EBIT, amounting to NZ$332 million, with the EBIT margin peaking at 8.2% during the said period.
Here, it’s pointed out that the Company’s 2Q EBIT jumped tremendously by 73% on 2Q FY21 and stood at NZ$264 million, thus offsetting impacts of the pandemic.
However, the construction company's cash flows were partly offset by flagged investments to rebuild the stock and housing investment, for it was NZ$157 million in HY22 as compared to HY21’s NZ$424 million.
Impressive dividend announcement
The management has declared to distribute 18.0 cps as a fully imputed FY22 interim dividend to its shareholders, which would be paid on 7 April.
FBU has positive outlook
Fletcher Building is optimistic about the second half of FY22 as it expects solid continuous support from its customers, thus leading to increased volumes.
Owing to its operational disciplines and overcoming inflationary pressures, FBU has forecasted its second-half EBIT margin to be nearly 9.5% and expects to deliver an FY22 EBIT of about NZ$750 million.
Ross Taylor, Fletcher Building’s Chief Executive, opines that the Company is positioned well, which would further accelerate its growth. FBU is investing in enhancing its manufacturing capacity so as to bolster its product and market growth with regards to its NZ materials and distribution segment, while for AU, the Company continues to focus on offering an innovative suite of disruptive products.
Moreover, for FY23, FBU anticipates further improving its EBIT margins across the Group to 10% and boasts of having a significant pipeline of investments for the future.
Bottom Line
Fletcher Building Limited maintains a strong position and expects to improve its performance in the future.
At the time of writing, on 16 February, FBU shares were up by 6.53% at NZ$6.690.