Brickworks shares rise despite swing to FY loss
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More news: Brickworks shares surged at market open, after the brick manufacturer swung to a statutory loss in FY24, having flagged major writedowns earlier this month.
Shares were up 5% to $27.92 by 10:30am AEST.
Brickworks swings to FY loss, to temporarily close plants
The news: Construction materials supplier Brickworks swung to a statutory loss in the 2024 financial year, and said it plans temporary plant closures in response to subdued building activity across Australia and North America.
The numbers: Brickworks posted a statutory net loss after tax of $119 million, compared with a net profit of $395 million in FY23. Underlying NPAT reduced 88% year on year to $61 million.
The company said that earnings were adversely impacted by a non-cash property devaluation of $215 million during the year, compared to a $112 million gain in FY23, and a $15 million loss on property sales, compared to a $269 million profit in the previous year.
Brickworks also recorded a post-tax non-cash impairment of $135 million, primarily in relation to Austral Masonry and Brickworks North America. Both businesses have been impacted over the past six months by a deterioration in building activity across key markets, the company said.
Group underlying EBITDA sank $80% to $157 million. Excluding the impact of the property revaluations and property sales, EBITDA was down 4% to $387 million. Total revenue dropped 8% to $1.09 billion.
Brickworks' directors declared a fully franked final dividend of 43 cents per share, an increase of 1 cent on the prior year.
The context: Brickworks said that it is planning temporary plant closures throughout FY25 to undertake maintenance and control inventory, in response to "subdued building activity" across Australia and North America.
In Australia, the company noted that it is moving through a cyclical low in building activity, with residential approvals at the lowest level for more than a decade.
What they said: "Our building products businesses in Australia and North America are facing challenges over the next 12 months, with subdued building activity across many of our key markets," Brickworks CEO Mark Ellenor said.
"Looking beyond the short-term market weakness, we are well placed to deliver strong returns when market conditions improve, following our recent plant investments, re-structuring and portfolio rationalisation activities," he said.
The source: ASX announcement
