Australia-based Wagners Holding Company Ltd has issued a market update for the six-month period to 31 December 2022 (1HFY23). According to the company, the update is based on current assumptions and estimates and is subject to the market conditions not materially changing.
Revenue for the period is forecast to reach AUD220m (US$142.2m), up AUD49m compared to the AUD171m seen in the 1HFY22. Operating EBITDA over the same period is expected to advance by AUD0.7-1.4m to AUD25-25.7m, while profit after tax is predicted to decline by AUD3.6-4.1m to AUD0.6-1.1m, compared to AUD4.7m in 1HFY22.
Operations have reportedly been impacted by a weakening Australian dollar along with increased clinker and shipping costs compared to the 1HFY22. Wet weather has also resulted in lower concrete and cement volumes, while there have been delays in project timing for the production of precast segments for the Sydney Metro project.
“Assuming a continuation of the current US change rate at 63 cents, we anticipate that the full year EBIT result for FY23, inclusive of the impact of fair value adjustments for derivatives and EFC*, will be in line with the actual results for FY22 of AUD20.9m,” said Cameron Coleman, managing director, Wagners Holding Company. According to the company, it is in compliance with its banking covenants and is in a “strong position to capitalise on improved market, economic and weather conditions.”
Wagners operates one grinding plant (1.3Mta cement capacity) located in Pinkenba, Brisbane, Australia.
*EFC - Earth Friendly Concrete®
