Fletcher Building has boosted its 2021-22 annual dividend by a third to 40 NZ cents per share after meeting full year earnings guidance, despite battling Covid, rising building costs and interest rates, especially in its home market of New Zealand.
The trans-Tasman group told stock exchanges on Wednesday that it will pay a final dividend of 22 NZ cents a share, up from 18 cents a year, taking the full year payout to 40 NZ cents (30 cents previously).
At the same time the company said it had completed $NZ274 million of its $NZ300 million buyback in the year to June.
Revenue for the year rose 5% to just on $NZ8.5 billion, with net after tax profit of $NZ432 million 42% higher than 2020-21’s $NZ305 million.
EBIT of $NZ756 million for the year was just above guidance for the year of around $NZ750 million.
Fletcher Building chief executive Ross Taylor said: “Fletcher Building delivered strong results in FY22 across all key metrics. Our performance highlighted our ability to deal with a dynamic operating environment, while remaining focused on delivering long-term, sustainable growth.
“Fletcher Building’s businesses generated cash flows from operating activities of $592 million. Our balance sheet remains robust with $1.1 billion liquidity and net debt of $670 million at year end. This positions us well as we move into the new financial year and continue to invest in the growth of the business.
Looking ahead Mr Taylor said “we believe that the economic trends in our key markets remain supportive for further growth.”
“In New Zealand, the activity pipeline continues to look ‘stronger for longer,’ especially in the residential sector. With ongoing supply chain and labour constraints having the effect of smoothing the recent sharp rises in building consents over a longer period, this is likely to mean an extended period of solid building activity through FY22 and beyond.
“In Australia, the residential outlook also remains resilient, particularly across detached housing and renovations, while the apartments, commercial and key civil sectors are likely to stabilise at current levels.
“There does remain some uncertainty around the impact of COVID-19 on activity in our markets. We will continue to monitor and manage this closely.
“Overall, the combination of a clear strategy, a favourable market outlook and a strong balance sheet means Fletcher Building is well-positioned to deliver future performance and growth,” he said.
