Brickworks (BKW) H2 2024 earnings summary

Executive summary

• Statutory loss of AUD 119 million for FY 2024, driven by non-cash impairments and property devaluations.

• Underlying NPAT declined to AUD 61 million and underlying EBITDA to AUD 157 million, mainly from property and investment declines.

• Building Products EBITDA increased in both Australia and North America, with margin improvements despite lower volumes.

• Dividend increased for the 11th consecutive year to AUD 0.43 per share, maintaining a 48-year record of stable or rising dividends.

• Total shareholder returns averaged 11.7% per annum over 25 years, with a 14.1% return for the year, outperforming the All Ordinaries Accumulation Index by 0.7%.

Financial highlights

• Group EBITDA excluding property revaluations and sales was AUD 387 million, down 4% year-over-year.

• Statutory NPAT loss of AUD 119 million includes AUD 135 million in non-cash impairments and AUD 180 million in significant and discontinued items.

• Net debt increased by AUD 29 million to AUD 682 million; gearing rose to 20%.

• Net tangible assets per share fell 3% to AUD 19.42; shareholders' equity decreased by AUD 179 million to AUD 3.4 billion.

• Dividend payments totaled AUD 101 million.

Outlook and guidance

• Short-term challenges expected in building products due to subdued market activity in Australia and North America; temporary plant closures planned in FY 2025.

• CapEx to decrease significantly in FY 2025 and FY 2026, focusing on cash generation.

• Significant growth in net rental income forecast from Property Trusts due to new developments and lease renewals.

• Property market conditions have stabilized; strong demand for industrial facilities expected to continue.

• Well positioned for strong returns when market conditions improve, supported by portfolio rationalisation and plant investments.