Brickworks (BKW) H2 2024 earnings summary

Executive summary

• Statutory loss of AUD 119 million for FY 2024, driven by non-cash property devaluations and impairments; underlying NPAT was AUD 61 million and underlying EBITDA from continuing operations was AUD 387 million, both down year-over-year.

• 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.

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

• Net tangible assets per share fell 3% to AUD 19.42; shareholder equity per share down 5% to AUD 25.09.

• Operating cash flow rose 7% to AUD 104 million; capital expenditure reduced to AUD 73 million as major projects completed.

Outlook and guidance

• Short-term challenges expected in building products due to subdued demand 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.

• Diversified asset base and low gearing position the group for future opportunities.