Adbri increases revenue by 8% in 1H22

Adbri increases revenue by 8% in 1H22
24 August 2022

Adbri’s revenue increased to NZD812.4m (US$501.4m) in the 1H22, up eight per cent on 1H21 driven primarily by strong construction and mining sector demand and improved pricing across most products, said the company.

Underlying net profit after tax decreased 1.3 per cent to NZD54.3m. Results were impacted by operational challenges associated with extreme wet weather events on the east coast of Australia, anticipated lower lime volumes, higher raw materials, shipping, transport, power and fuel costs also affected results. These difficulties were partially offset by out-of-cycle price increases and profit on property, plant and equipment sales, said a company statement.

Sale volumes increased across many product lines as strong demand continued in the construction and mining sectors, despite significant disruption due to severe weather events on the east coast of Australia.

Looking ahead, Adbri reported, "We anticipate strong demand for cement, although building and project completion timelines are being extended due to materials and labour shortages. Lime volumes are anticipated to be stable in H2 versus H1. Lime pricing is expected to improve with new customers seeking reliable domestic supply due to supply chain disruptions experienced by importers."

In addition, "Demand is expected to remain strong for concrete and aggregates to the end of the year, and if weather abates in NSW, will be buoyed by the commencement of delayed projects and flood recovery works. Softness in retail spending is expected to impact masonry demand, with increased interest rates impacting household discretionary spend," said Adbri.

Published under Cement News