Fletcher Building posts EBIT growth of 6% in FY23

Fletcher Building’s FY23 financial result continued to build on the progress made in both EBIT levels and EBIT margins over the last several years.

“Despite softer residential markets in New Zealand and Australia, and the major New Zealand weather events in the second half, group EBIT before significant items grew by six per cent in FY23 to NZD798m [US$475.7m]," said Fletcher Building Chief Executive Ross Taylor. "Group EBIT margin of 9.4 per cent in FY23 lifted from 8.9 per cent in FY22, a good performance in a slowing market. Our return on funds employed (ROFE) remained ahead of target at 17.1 per cent.

“Net profit after tax was NZD235m, impacted by significant items charges of NZD301m. The significant items related mainly to additional provisions of NZD255m on the New Zealand International Convention Centre and Hobson Street Hotel (‘NZICC’) project.

“Cash flows from operating activities were NZD388m, compared to NZD592m in FY22. Adjusting for tax, funding costs and lease principal repayments, Fletcher Building businesses generated trading cash flows of NZD475m compared to NZD462m in FY22. Our balance sheet remains strong with NZD1.4bn liquidity.

“Looking forward to FY24, we expect some further tightening in our overall volumes and so our focus remains on strong customer performance, cost control and pricing disciplines across our businesses. We have shown we are well equipped to continue performing solidly through the cycle.”