In This Article:
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Revenue: Down 7% to $3.6 million for the half year.
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EBIT: $167 million, $96 million lower than the prior period.
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EBIT Margin: Decreased to 4.7% from 6.8% in the prior period.
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Net Loss: $134 million for the first half of FY25.
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Trading Cash Flow: $138 million compared to $225 million last year.
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Net Debt: Reduced to $1.1 billion at the end of the half year.
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Cost Reduction: Achieved a first half benefit of $91 million, with $61 million from general overheads and $30 million from COGS.
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Capital Raise: $700 million applied to repaying bank debt and reducing USPP debt.
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Return on Funds: Declined to 8.4%.
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Basic Earnings Per Share: Negative $0.143.
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Funding Costs: $63.5 million, expected to be $100 million to $105 million for the full year.
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CapEx: $114 million for the half year, with base CapEx at $47 million.
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Leverage Ratio: Improved to 1.4 times.
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Dividend: No interim dividend declared due to volatile market conditions.
Release Date: February 18, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Fletcher Building Ltd (FCREY) has completed a governance and board reset with the appointment of experienced industry experts, enhancing leadership quality.
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The company achieved significant improvements in sustainability, with a 21% reduction in emissions compared to the 2018 baseline.
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The cost-out program is ahead of schedule, with a better-than-expected first-half benefit of $91 million.
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Fletcher Building Ltd (FCREY) successfully divested the trade link business, contributing to a more robust balance sheet.
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The construction division reported improved revenue due to higher work volumes from key infrastructure projects.
Negative Points
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Fletcher Building Ltd (FCREY) faced a 7% decline in overall revenue due to challenging trading conditions and lower market volumes.
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The company recorded a net loss of $134 million in the first half of FY25, impacted by provisions and non-cash losses.
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EBIT for continuing operations was $96 million lower than the prior period, with a significant adverse impact from lower market volumes.
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The residential and development division saw a slowdown with 115 fewer units contracted and sold versus the prior period.
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The company decided not to declare an interim dividend due to volatile market conditions and financial performance pressures.
Q & A Highlights
Q: A year ago, the CEO and Chairman resigned due to issues within the company. Can you explain what went wrong and why we have to wait until June for more information? A: I can't speak to past issues as I wasn't here, but our focus is on moving forward and ensuring effective communication between management and the board to drive the business in the right direction.