Big River Industries (BRI) H2 2024 earnings summary

Executive summary

• Revenue declined 7.7% year-over-year to AUD 414.7 million, mainly due to a sharp downturn in the residential market and site delays, partially offset by commercial market strength.

• EBITDA before significant items fell 36% to AUD 32.6 million, reflecting volume declines and reduced operational efficiency.

• NPAT before significant items dropped 62.8% to AUD 8.4 million; reported NPAT to equity owners was AUD 8.1 million, down 63.8% year-over-year.

• Cash conversion remained strong at 98.2%, supporting a total dividend of 7.5cps at a 78% payout ratio.

• Acquisition of Specialised Laminators Qld in May 2024 expanded capabilities and was successfully integrated.

Financial highlights

• Gross profit margin declined 142 basis points to 26.0%, mainly due to lower frame and truss volumes.

• Operating expenses increased 4.1% (1.1–1.3% like-for-like), reflecting wage increases and continued investment in people and systems.

• Net debt rose to AUD 27.6 million, mainly due to acquisition funding and tax settlements.

• Gearing ratio increased to 18.8%, within historical range.

• Working capital to revenue ratio stable at 16.6%, with debtor days reduced from 43 to 42.

Outlook and guidance

• Residential market expected to remain soft for the next 12 months, with recovery anticipated towards late 2025.

• Commercial segment outlook remains strong, supported by solid project pipelines.

• Focus on growth in Queensland, Western Australia, and South Australia, leveraging market and regional diversity.

• Continued investment in people, systems, and process alignment to drive future synergies and efficiencies.

• Pursuit of strategic M&A and operational synergies to offset margin pressures.