Australia's Boral beats profit estimates, shares jump over 12% (updated)

Boral

08/02/2023 24:37

(Updates with forecast, brokerage estimates, CEO comment)
       Feb 8 (Reuters) - Australia's Boral  BLD.AX  posted
first-half underlying earnings above market consensus on
Wednesday with a considerable rise in revenue driven by volume
and pricing, sending the cement products maker's shares up more
than 12%.
    Underlying net profit before significant items from
continuing operations came in at A$56.8 million ($39.53 million)
for the six months ended Dec. 31, beating A$38 million consensus
and higher than the year-ago period's A$37.2 million. Revenue
rose 12% to A$1.68 billion.    
    Shares of the construction materials maker jumped as much as
12.2% to A$3.950, their highest since Feb. 10, 2022.
    Presenting his first earnings results since taking charge in
early December, Chief Executive Officer Vik Bansal said, "while
our financial results are pleasing considering a difficult
inflationary environment, I know Boral is capable of much more."
    The Sydney-based firm forecast second-half earnings before
interest and taxes (EBIT) to be broadly in line with A$95.3
million recorded in the first half, implying a full-year EBIT of
A$190.6 million.
    Citi expected full-year EBIT to jump to A$209.8 million,
nearly doubling from A$112.2 million a year ago, while
Barrenjoey forecast A$181 million.    
    Boral decided against paying an interim dividend, citing
limited availability of franking credits and its free cash flow
performance for the half.
($1 = 1.4370 Australian dollars)
 (Reporting by Rishav Chatterjee and Tejaswi Marthi in
Bengaluru; Editing by Shailesh Kuber and Subhranshu Sahu)
 ((Rishav.Chatterjee@thomsonreuters.com;))