Adbri sees 4% decline in revenue for 2020

Australia-based Adbri Ltd has announced a 4.1 per cent decrease in revenue to AUD1454.2m (US$1.15bn) in 2020, compared to AUD1517m in the previous year. The result has been attributed to the impact of lower residential activity on cement and concrete volumes.

However, reported net profit after tax advanced 98.1 per cent YoY to AUD93.7m from AUD47.3m.

"In the context of the challenging operating environment, the financial outcomes we delivered for FY20 are better than we had expected and reflect the successes of our cost-out and business improvement programs. Adbri also benefitted from improving demand in the western Australia market during the period which offset slowing demand in east coast markets, particularly in New South Wales," said Nick Miller, CEO.

Western Australia cement volumes increased as residential construction and infrastructure demand improved and the mining sector remained robust, although construction activity in other states was lower due to declining residential construction activity and slower demand from infrastructure, according to a press release. Overall cement volumes were down 7.1 per cent YoY, while average cement prices were up 1.4 per cent. Clinker volumes were 23 per cent lower, mainly due to lower offtake by its Sunstate Cement joint venture partner Boral.