Announcement
FLLYR: FBU: Fletcher Building - FY19 Results and Annual Report
08:35am
FBU
21/08/2019 08:35
FLLYR
PRICE SENSITIVE
REL: 0835 HRS Fletcher Building Limited
FLLYR: FBU: Fletcher Building - FY19 Results and Annual Report
Fletcher Building returns to profit in year of strong execution
Auckland, 21 August 2019: Fletcher Building Limited's FY19 financial results
reflect a solid NZ performance, a return to profitability, and successful
execution of the first year of its five-year strategy aimed to refocus and
grow the business.
Summary:
- Revenue from continuing operations of $8,308 million, up 1% on FY18
- Net Profit After Tax of $164 million, compared to a loss of $190 million in
FY18
- Final dividend of 15 cents per share declared, to be paid on 19 September
2019
- EBIT before significant items $631 million, up from $50 million in FY18
- Balance sheet materially strengthened, NZ$300 million share buyback
programme
Fletcher Building Chief Executive Ross Taylor said: "FY19 was an important
transition year for the Company and we made significant progress on our
five-year strategy. Fletcher Building delivered a solid financial performance
for the year, and I am pleased with the work we carried out to stabilise and
refocus the Company."
Revenue from continuing operations of $8,308 million increased slightly
compared to the prior year. Total EBIT before significant items was $631
million, which was within the Company's earnings guidance range and compared
to $50 million in the prior year.
"In New Zealand our core building products and distributions businesses
delivered good results, maintaining strong market positions and revenues
despite operating in a highly competitive environment. The Construction
division stabilised which led to a return to profitability, and we are on
track to complete the remaining legacy B+I projects within the provisions we
set in February 2018.
In Australia, the performance reflected tough market conditions, rising input
costs and poor operating disciplines in some areas. Turnaround plans are well
underway to reset these businesses and deliver growth in FY20.
The Company's decision to operate in a more focused geographic footprint led
to the sale of international businesses Roof Tile Group and Formica during
the year. Both sales were completed ahead of schedule and the proceeds
received were above expectations. The sale of Formica for NZ$1.2 billion
materially strengthened the Company's balance sheet, we have commenced our
NZ$700-800 million debt reduction and will distribute up to NZ$300 million to
shareholders through an on-market share buyback.
The Company reinstated dividend payments during FY19 with a total dividend
for the year of 23 cents per share which was weighted to the final payment.
The final dividend of 15 cents per share will be paid to shareholders on 19
September 2019 and will be unimputed and unfranked for NZ and Australian
taxation purposes. The dividend reinvestment plan will not be operative for
this dividend payment.
"FY19 was a year of solid execution against the Company's strategy. We have
landed a leaner organisation and end the year with a more manageable
footprint and a strong balance sheet. Looking ahead, we will drive
performance across the business in FY20."
#Ends
For further information please contact:
MEDIA
Simone Rosentreter
Senior External Communications Advisor
+64 21 137 4137
simone.rosentreter@fbu.com
INVESTORS AND ANALYSTS
Aleida White
Head of Investor Relations
+64 21 155 8837
aleida.white@fbu.com
End CA:00339489 For:FBU Type:FLLYR Time:2019-08-21 08:35:18
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