Adelaide Brighton records net profit increase in 1H18

Australia's Adelaide Brighton has posted a 17.7 per cent YoY increase in net profit to AUD84.5m (US$62m) in the 1H18. Revenue saw a rise of 11.7 per cent to AUD807.2m, on the back of strong markets in New South Wales, Queensland and Victoria.

"It's really pleasing to deliver record half-year financial results and dividends for our shareholders. Revenue, EBIT, net profit, cash flow and dividends were all first-half records," said Martin Brydon, CEO, Adelaide Brighton.

The company expects strong demand for construction materials in the second half of the year, with cement and concrete sales anticipated to increase due to improved demand in South Australia and the east coast, according to The Australian.

Neverthless, shares fell down by more than 6 per cent for the company after analysts were left disappointed by the full-year profit forecast of US$210m due to concerns about the impact of the weakening residential property market on the cement supplier.

Following Mr Brydon's plans to retire as CEO, the company is looking for a replacement and expects to make an announcement in the fourth quarter. Michael Kelly, CFO, has now also resigned from his role effective from 3 November.