Brickworks shares sink on profit drop
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More news: Shares in Australian brick maker Brickworks were down 6.6% as of 2:55pm AEST after the company recorded a 54% drop in full-year profit amid pressures from inflation, interest rates, labour shortages and materials supply issues.
What they said: "The deepening housing crisis is only going to get worse, with housing approvals currently at ten-year lows and population growth at a record high," Brickworks managing director Lindsay Partridge said in a media release. Partridge also called for an end to "excessive taxes on newly constructed homes.
Brickworks full-year profit slides 54%
The news: Australia’s top brick maker Brickworks has reported a slide in full-year profit as inflationary pressures and supply issues weighed on its results.
The numbers: Statutory profit for the year to July 31 fell 54% to $395 million, while underlying net profit was also down 32% to $508 million. However, revenue for the year was up 7.8% to $1.18 billion and the company declared a final dividend of 42 cents per share, up from 41 cents a year ago.
The context: The decline in profit is partly attributable to an inflated figure in the year ago period following the takeover of investment company Milton Corporation. However, the construction materials supplier said it also faced a number of challenges including rapidly increasing interest rates, significant inflationary pressures, widespread labour shortages and raw materials supply issues.
The source: ASX announcement
