Boral shares leap after earnings guidance upgrade
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More news: Boral shares surged over 10% in early trading on the ASX, after the construction materials firm lifted its FY24 profit guidance for the second consecutive quarter.
Despite good conditions for the sector during the quarter, UBS analysts said they were surprised by how rapidly Boral controlled costs while still participating in industry pricing. They commented the company would need to beat the top end of its guidance to retain a double digit EBIT margin in the second half.
Boral profit jumps, upgrades earnings guidance
The news: Construction materials firm Boral upgraded its earnings guidance after boosting net profit 36% in the first half of the 2024 financial year.
The numbers: Boral upgraded its earnings guidance to between $330 million and $350 million, up from between $300 million and $330 million.
The company reported first-half net profit of $122 million compared to $89.5 million in the previous corresponding period. Adjusted profit jumped 143.9% to $138.6 million, while underlying EBITDA was $313.6 million in the six months to December. This was an increase of 51.8% compared to the same period last year.
The context: Boral CEO Vik Bansal said the strong first-half showing was testament to the company's operating model and business improvement strategy, while combined improvements in price and cost efficiencies, as well as product volume levels, supported the earnings gains.
Boral shares soared in November after the Sydney-based company lifted its full-year earnings guidance as higher prices and cost management boosted its July-October performance.
The AFR reported in December that Boral's sharemarket value increased $2 billion in 12 months following Bansal's appointment as CEO in 2022, as the company implemented 12% price increases to offset rising input costs.
The source: ASX announcement
