Fletcher Building swings to full-year loss
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The news: Troubled build products supplier Fletcher Building has swung to a full-year loss as volumes dropped amid slowing demand and competitive pressures.
The numbers: The company reported a net loss of NZD227 million ($207 million) for the year to 30 June, down from a NZD235 million profit a year ago. Revenue was marginally lower at NZD8.44 billion and the company will not pay any dividend. Earnings were down to NZD509 million compared to $785 million a year ago, but within its guidance range.
The context: Acting CEO Nick Traber said market volumes declined materially with the New Zealand segment down 25% and Australia posting a 15% drop, resulting in substantial revenue declines in its materials and distribution businesses.
Fletcher cut its FY24 earnings guidance in May amid a slowing market, prompting a downgrade of its credit rating. The NZX and ASX-listed company has seen several top management departures this year, as it faces shareholder discontent over weak share price performance and a half-year loss.
The group expects the year ahead to remain challenging, with macro-economic pressures likely to persist. It flagged a further decline in market volumes in its materials and distribution businesses, expected to be in the range of 10% to 15% in FY25.
The source: ASX
