Boral report 23% increase in net profit after tax
Improvements across all divisions contribute to significant uplift in company’s profit
BORAL Ltd have reported a 23% increase in net profit after tax to A$137 million for the six months ended 31 December 2015, reflecting improvements in margins, stronger housing activity in the US and continued strength in Australia.
Sales revenue from continuing operations of A$2.2 billion was in line with the prior year as higher revenues associated with housing activity in Australia and the US offset the anticipated decline in resource-based and other major project activity.
On a reported basis, however, sales revenue of A$2.2 billion was down by 4% on the prior year, due to the impact of equity accounting for the Boral CSR Bricks joint venture, which was formed on 1 May 2015.
Earnings before interest and tax before significant items increased 19% to A$200 million, underpinned by higher earnings from all divisions, including a strong focus on operational cost improvements and some pricing gains.
Boral’s chief executive officer and managing director, Mike Kane, said that further improvements across all divisions contributed to the significant uplift in Boral’s profit.
‘The substantially improved result is a reflection of our commitment to improve Boral’s cost base, grow our margins and respond more quickly and more efficiently to market conditions,’ he said.
‘The success of the first half is underpinned by a very strong residential construction market in New South Wales, a solid performance in south-east Queensland, further recovery in the US and a successful growth strategy in the gypsum business in Australia and Asia.
‘We have continued to improve the underlying performance of our business in line with our strategy. We have maintained a strong balance sheet and we are managing our portfolio more efficiently.’