Building material manufacturer Brickworks has recorded an underlying Net Profit After Tax (NPAT) of $410 million, an increase of 24 per cent from the previous corresponding period, for the half-year that concluded on 31 January, as revealed in an ASX announcement.
The prior corresponding period was bolstered by a large one-time profit related to the deemed disposal of Washington H Soul Pattinson shares following its merger with Milton.
The ASX-listed company’s underlying g earnings before interest, tax and depreciation (EBITDA) grew even faster, increasing 25 per cent over the prior similar period to $607 million.
However, Brickworks said the statutory NPAT was $354 million, down 38 per cent, after significant items and discontinued operations were taken into account.
Once again, the property division stood out, with the sale of Oakdale East Stage 2 into the Industrial JV Trust with Goodman Group serving as the division’s high point for the first half.
Property earnings were also supported by the completion of several new developments at the Oakdale West Estate, in Western Sydney.
In North America, sales revenue increased 18 per cent to $220 million in the first half from the previous equivalent quarter.
A strong rise in sales to the multi-residential segment and through the vertically integrated retail section were the main factors for the increase in revenue.
Lindsay Partridge, Brickworks managing director, pointed out that despite increasing interest rates, the company is continuing to see a high demand for quality industrial property.
“Major customers are seeking well-located sites, with large land footprints, on which to develop specialised, high-value facilities,” Partridge noted.
He continued, “The addition of a significant new parcel of land at Oakdale East is well suited to accommodate this demand.”
Once finished, the Brickworks official said this new estate is anticipated to offer the trust an extra leased asset value of about $1 billion and a development pipeline of about five years.
“Within our Property Trusts, the development pipeline is strong, and we expect a significant increase in rental income over the coming years as new developments are completed and rent reviews are undertaken,” Partridge said in his forward-looking statement.
The board of directors declared a fully franked interim dividend of 23 cents per share, a 1-cent increase over the previous equivalent period.
The interim dividend is payable on 2 May 2023, with a record date of 11 April 2023.
