Brickworks Limited (ASX: BKW) released its 2018 financial results to the market today revealing a 14% rise in net profit.
Brickworks manufactures and distributes clay and concrete products with subsidiaries like Austral Bricks, it carries out property development and realisation, and manages investments. It is a major shareholder of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL).
Brickworks Results:
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Here are some of the highlights from its report:
- Revenue fell by 2% to $821.1 million
- Underlying EBITDA rose by 13% to $309.2 million
- Underlying net profit increase 14% to $223.7 million
- Reported net profit fell 6% to $175.4 million
- Total dividends increased 6% to 54 cents per share
Although total revenue fell, building products revenue rose by 7% to $820 million, driven by demand from east coast divisions, particularly New South Wales and Victoria.
The statutory, or reported, profit declined 5.8% due to restructuring and commissioning costs within ‘Building Products’ and $39.2 million in net costs relating to Soul Patts significant items.
Brickworks Chairman Mr Robert Millner said:
“Our strong financial performance during the year again reinforced the benefit of our diversification strategy, which has consistently grown net asset value over the long term and helped deliver solid returns and stability to our shareholders.”
Outlook:
Brickworks said that market fundamentals remain supportive for new housing construction, however the tighter bank lending requirements is starting to impact building activity.
The company also recently created a new five-year wholesale gas agreement with Santos Ltd (ASX: STO) because of the uncertain energy market.
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