Boral, the Australian building materials giant, substantially improved its revenue, earnings, and margins in the half year to 31 December 2023.
Net revenue for the trading period was AUS $1.839.9 billion (US$1.207.5 billion), up 9.4% on the same period of the previous year, driven by strong price realisation and volumes that were flat to slightly up on pcp (prior corresponding period). Boral’s EBIT was up 110.9% to $201 million, reflecting higher revenue and rigorous cost management, and EBIT margin was 10.9%, a 520 basis-point improvement on pcp. NPAT (net profit after tax) was $138.6 million, up 143.9%.
Boral chief executive officer Vik Bansal said: “I am pleased to report first-half results that demonstrate the benefits of our operating model and our business improvement strategy.
“Our volumes were flat to slightly up on pcp, with an increase in quarry and recycling materials. We achieved good price realisation across all product lines, and this supported growth in net revenue. We also continued to reduce costs and instil operational efficiencies to offset input cost inflation”. “The combined improvements in price and cost efficiencies, together with a mix in volumes that were flat to slightly higher, enabled an EBIT margin of 10.9%, almost double pcp.
“Boral’s earnings have historically been weighted towards the first half. While FY23 was a recent exception to this trend, with the introduction of a new operating model and strategy in 1H23, we expect to return to a typical first-half weighting in FY24.”
