Boral on the improve, but no dividend

Building products group Boral has reported improved revenue and profit in the six months ended 31 December 2022 with its upwards pricing decisions taking hold, but the board again did not declare a dividend.

In this the first year under new CEO Vik Bansal, the company reported an underlying net profit after tax (NPAT) of $56.8 million, up 53 percent on the previous corresponding period, and adjusted earnings per share (EPS) of 5.1 cents, up 50 percent.

Net profit after tax (NPAT) was $89.5 million for 1H FY23, down 91 percent on the previous half which included $1 billion of income from discontinued operations.

Bansal, who came to the CEO role following the company’s disastrous foray into the US market which led to a dramatic downsizing of the group, said the figures showed improved performance on key metrics amidst a challenging inflationary and operating environment.

“While our financial results are pleasing considering a difficult inflationary environment, I know Boral is capable of much more.

“It is promising to see our pricing actions gain traction, which along with volume growth and cost discipline drove EBIT excluding property, 23 percent higher to $95.4 million compared to the previous corresponding period.”

However the good times have not yet returned to Boral, the company said: “Considering limited availability of franking credits and free cash flow performance for the half, the board has decided to not pay an interim dividend.”

The company did report progress on its corporate goal of Zero Harm.

“Our Total Recordable Injury Frequency Rate (TRIFR) for 1H FY23 was 7.4, an improvement of 34 percent compared to the prior corresponding period.

“On a 12-month rolling basis ending 31 December 2022 TRIFR was 9.8, an improvement of 13 percent.”

Further reading:
BORAL TO RETURN $3BN TO SHAREHOLDERS AFTER US EXIT
BORAL SLUMPS MAKES IN FALLOUT FROM US DISASTERS

Picture: Boral