Economy to grow as housing market revives, Boral chief predicts
The chief executive of Boral says the Australian economy will begin to grow again next year with the housing market reviving and inflation rising more slowly, flagging higher earnings at the building materials giant.
Vik Bansal was appointed to run the company – controlled by the billionaire Stokes family – in early October. On Thursday, he said an overhaul of the business was on track but two years away from being complete.
“Every single thing has gone in the right direction,” Mr Bansal said.
The company reported that it had raised concrete prices by 12 per cent in the 12 months to June 30, while cement prices were up eight per cent and quarried products like gravel had increases of 11 per cent. That underpinned a 37.6 per cent lift in earnings before interest, tax, depreciation and amortisation to $454.4 million compared to the previous financial year.
Vik Bansal said the rate of inflation was slowing, but cautioned that cost input inflationary pressures weren’t likely to return to normal. Louie Douvis
Boral shares gain 7 per cent to $4.67 in early trade on Thursday, and have risen 85 per cent from a low of $2.49 in October last year.
Revenues were up 17.1 per cent to $3.46 billion. But one-off costs connected with the exit of the group from its North American business pulled net profit after tax down by 85 per cent to $148 million.
The company is still not in a position to pay out any dividends, it told investors. It last paid a regular dividend four years ago, although shareholders did receive a special dividend in February 2022 from the proceeds of US asset sales. Mr Bansal said Boral needed to build up franking credits before it began paying dividends again.
Boral expects to generate EBIT of between $270 million to
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