ASX-listed global engineering firm Austin Engineering has reported a 525 per cent growth in net profit after tax (NPAT) in its 2022 financial report.
Austin earned an NPAT amounting to $20.6 million, above guidance of more than $18 million.
It produced total group revenue of $203.3 million, marking a 3 per cent increase from fiscal year 2021’s result.
In a media statement, Austin attributed the results to a high level of sales for its new product range, particularly during the second half of fiscal year 2022.
This included the JEC High-Performance Bucket, which helped deliver a four-fold increase in sales for Austin’s mining bucket products.
The company’s enhanced product range, in tandem with a heightened focus on operational efficiency, drove a rise in earnings before interest, taxes, depreciation, and amortization to $32.5 million, equating to a 155 per cent increase on the pcp and a growth in the EBITDA margin rate from 6.4 to 16 per cent.
“These outstanding full-year results, which exceeded guidance, have been driven by the successful and ongoing implementation of the Austin 2.0 global strategy that has significantly improved our margins and delivered substantial improvements to our competitiveness, operational efficiency and product performance,” said David Singleton, CEO and managing director at Austin.
Singleton noted that the company’s Australian operations had a difficult period in fiscal year 2022 affected by the supply chain and labour disruptions brought by the global pandemic.
“There were some difficulties in absorbing the much higher level of variability in product delivery alongside increasing mining bucket sales. This has led to a drop in margins and revenue in this region, and therefore is a key focus of management attention,” Singleton added.
For FY 2023, the company expects its NPAT to be up to 17 per cent to approximately $24 million excluding the positive impact that will come from the recent acquisition of Mainetec.
