In a significant return to profitability for the year ending on June 30, building products conglomerate Boral (ASX:BLD) has decided to withhold dividends, a move that holds no major concern as the entity is now under the control of Kerry Stokes' Seven Group Holdings.
With nearly 70% ownership by Seven Group Holdings, the absence of a dividend might normally raise concerns. However, given the dominant shareholder's position, the absence of a payout carries minimal impact.
Boral, in a statement to the ASX, declared that the 2022-23 financial year yielded a result characterised by "strong underlying revenue, profit growth, and margin recovery."
The company's underlying net profit after tax surged by 304.2% to $142.7 million compared to the previous year, 2021-22, which witnessed a comprehensive asset restructure following Seven Group Holdings' takeover.
On a statutory basis, Boral reported a net after-tax profit of $148.1 million for 2022-23, a decrease from the previous year, primarily due to the absence of $977.6 million in post-tax income from discontinued operations. This income had mainly originated from the sale of the North American Building Products business.
Compared to FY22, Boral's net revenue of $3.46 billion recorded a robust 17.1% growth, driven by increased volumes across all product lines and enhanced pricing dynamics in all regions and product categories.
EBITDA experienced a notable surge of 37.6%, reaching $454.4 million. This jump was attributed to improved cost management and enhanced price discipline, contributing to margin expansion.
Vik Bansal, Boral's CEO, expressed satisfaction with the company's performance, stating, "I am pleased to see Boral deliver a set of full-year results that show clear improvement across the entire business and point to the opportunities that remain ahead."
Bansal further elaborated, "We have seen volume growth across all our products, coupled with a disciplined approach to price, cost, and cash. Safety of our people is our highest priority and zero harm remains our goal. Significant work remains to deliver best-in-class performance we strive for, and a 47% improvement in our recorded injury rates equates to 83 fewer people injured compared to the previous year."
He continued, "Along with the improvement in safety of our people, we remain focused on improving our customer service. Our PEMAF pillars – People, Environment, Markets, Assets, and Financials – continue to underpin the simplification and standardisation initiatives that are now well underway at Boral."
Looking ahead to the fiscal year 2023-24, Boral anticipates a further rise in earnings. The company reported an EBIT of $231.5 million for the 2022-23 year and forecasts a growth to a range of $270 million to $300 million.
