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Boral announce solid full-year result

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Continued strength in Australian infrastructure activity reflected in result for full year ended 30 June 2019

BORAL Ltd have reported a solid result for the full year ended 30 June 2019, reflecting continued strength in Australian infrastructure activity, Headwaters acquisition synergies and benefits from improvement programmes.

Net profit after tax before amortization (NPATA) and significant items of A$486 million for the full year ended 30 June 2019 was 6% lower than full-year 2018, whilst net profit after tax (NPAT) before significant items of A$440 million was down 7%.

Reported sales revenue of A$5,863 million was steady compared with full-year 2018, whilst sales revenue for continuing operations of A$5,801 million was up 4%, despite a 15% decline in Australian housing starts and a 2% decline in the US housing market

Earnings before interest, tax, depreciation and amortization (EBITDA) of A$1,037 million compared with A$1,056 million last year, whilst EBITDA for continuing operations of A$1,033 million was up 2%.

Full-year Headwaters synergies of US$32 million were slightly ahead of plan, with total synergies of US$71 million now delivered at end of year two

Commenting on the full-year 2019 results, Boral’s chief executive officer and managing director, Mike Kane, said: ‘Boral’s full-year results demonstrate the benefits of strong infrastructure activity in Australia and resilience of our underlying businesses, together with implementation of improvement initiatives and cost-reduction programmes across the company.

‘While we have seen a 15% decline in Australian housing starts, lower Australian property earnings and lower than expected growth in North America, revenue from our continuing operations was up 4% and EBITDA improved 2%.

‘We also achieved better than expected Headwaters acquisition synergies, delivering US$71 million in synergies to date, with our four-year synergy target of US$115 million remaining firmly in sight.’

Commenting on the outlook, Mr Kane said: ‘After taking into account where Boral finished the year in 2019, the outlook for Boral’s markets in full-year 2020, and the trading conditions we have seen in July and August, we expect Boral’s NPAT (before significant items) to be around 5–15% lower in full-year 2020 relative to full-year 2019.’

Looking beyond full-year 2020, however, Mr Kane said Boral were well-placed to deliver medium- and longer-term growth.

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