Adbri reports 13% revenue rise in 2023

Adbri reports 13% revenue rise in 2023
27 February 2024

Adbri Ltd has reported revenue of AUD1922.9m (US$1259m) in 2023, up 13.1 per cent from the AUD1700.3m seen in the previous year. Statutory EBITDA advanced 5.2 per cent YoY from AUD282.6m in 2022 to AUD297.4m the following year, with underlying EBITDA coming in at AUD311m in 2023, up 30.9 per cent YoY. Statutory net profit after tax in 2023 stood at AUD92.9m, down 9.5 per cent from AUD102.6m in the previous year, while underlying net profit after tax was up 43.8 per cent YoY over the same period from AUD77.7m to AUD111.7m. 

2023 saw Adbri’s cementitious materials revenue improve 7.8 per cent YoY, marking the third-consecutive year of growth. Volumes were also up, advancing by 2.8 per cent on the previous year. According to the company, this performance was driven by strong demand across most sectors, particularly mining and engineering/infrastructure. The national average selling price of cement increased by 8.2 per cent in 2023, compared to the previous year. 

Last year saw Adbri launched and placed over 300,000m3 of its EvoCem, a lower-carbon, general limestone cement. It also extended supply contracts to BHP’s Prominent Hill and Carrapateena operations to 2026 and entered into a two-month extension of the Independent Cement and Lime (ICL) cementitious supply contract. It also entered into a long-term agreement with CSL to have one of the world’s first hybrid electric battery capable vessels as its limestone carrier. The new vessel will support the increase in cement volumes at Adbri’s Birkenhead facility. 

With inflationary pressures continuing to impact energy and raw materials costs, a new efficienct kiln burner was installed at Birkenhead in 2023 providing a five per cent clinker gas consumption benefit, and the ability to support up to 100 per cent substitution of natural gas with refuse-derived fuel in the calciner. 

Elsewhere in the company, revenue for lime increased by 9.6 per cent YoY in 2023 on the back of improved pricing for existing customers. Revenue for concrete was up 20.3 per cent YoY, driven primarily by price increases in the 2H22 and early-2023, as well as a 2.5 per cent advance in volumes. Aggregates demand has continued to grow with a two per cent increase in volumes in 2023 and a 19.6 per cent advance in revenue in 2023, compared to the previous year, supported by strong demand in Queensland. Solid price growth and a significant increase in contracting revenue led to a 9.1 per cent rise in masonry revenue in 2023, versus 2022. 

Commenting on the results, Samantha Hogg, deputy chair, and Mark Irwin, CEO, said, “In 2023 we took significant steps to refocus and reshape our organisation to support a more resilient Adbri and to invest in our future. Our focus on best‐in‐class customer solutions and margin recovery has supported a strong full year financial result for the year ended 31 December 2023.”

Published under Cement News