Tamawood (TWD) H2 2024 earnings summary

Executive summary

• FY24 profit before tax rose 165.7% to $8.03 million from $3.02 million in FY23; net profit attributable to members was $5.54 million, up from $2.11 million.

• Revenue increased to $85.09 million from $76.94 million year-over-year, with improved supply chains and margins supporting earnings.

• Cash on hand at year-end was $6.11 million, up from $5.23 million, and the company remains debt free.

• Dividend payments restored to two per year, with a final dividend planned for December 2024; $9.72 million in dividends paid in FY24.

• Project DeRisk software enabled price adjustments to maintain margins amid supplier price fluctuations.

Financial highlights

• Revenue: $85.09 million (up from $76.94 million year-over-year).

• Net profit: $5.54 million (up from $2.11 million year-over-year).

• Basic and diluted EPS: 15.3 cents (up from 6.01 cents year-over-year).

• Net assets increased to $33.21 million from $32.22 million.

• Cash flow from operations: $6.02 million (up from $3.96 million year-over-year).

Outlook and guidance

• Home building conditions have improved, but FY25 earnings guidance is not provided due to unpredictable inflation, interest rates, land shortages, and weather.

• The company expects continued demand from the housing shortage but notes risks from increased builder insolvencies and election-year uncertainty.

• Focus remains on operational efficiencies and expansion in NSW, Victoria, and South Australia.