Adbri reports 8% rise in revenue in 2022

Adbri has reported an 8.4 per cent YoY increase in revenue in 2022 to AUD1.7bn (US$1142m), driven by price increases and volume growth across most product lines. Statutory net profit after tax came in at AUD102.6m, down from AUD116.7m in the previous year, due to higher operating costs as a result of inflation, particularly energy costs and wet weather events. Capital expenditure in 2022 stood at AUD255.1m, up from AUD140.5m in the previous year, due to the spend on the Kwinana Upgrade project, which is due to the commissioned and become operational in 2024.

In the concrete and aggregates business, revenue advanced 12.5 per cent YoY in 2022, supported by solid demand from residential and infrastructural sectors along with price increases, particularly in the 4Q22. Adbri also completed the Zanows concrete and quarries acquisition, extending its vertically integrated footprint and adding to its network of concrete assets in southeast Queensland.

Revenue in the lime business in 2022 was in line with the previous year, despite volumes falling by 11 per cent. Average selling prices advanced by 11.4 per cent as a number of companies switched from imported product to domestic supplies.

Commenting on the results, Mark Irwin, Adbri’s new chief executive officer, effective from 28 February 2023, said “Demand for Adbri’s products remained strong, with volume growth delivered across most product lines and price increases driving 8.4 per cent growth in revenue year-on-year to AUD1.7bn. Our full year profit result was impacted by higher operating costs caused by inflationary pressures and wet weather events. Despite some significant operational headwinds during the year, the company made solid progress on a number of strategic initiatives, including our Kwinana Upgrade project, growth of our concrete and aggregates footprint through the Zanows acquisition, further recovery in our lime business, increased exposure to the infrastructure sector and divestment of some surplus land holdings.”

For 2023, the company anticipates cost headwinds to persist, but strong demand for products and the benefits of price increases should “rebuild resilience and margin”.

Adbri has also released its latest sustainability report. In 2022 the company’s total operational Scope 1 and Scope 2 greenhouse gas emissions fell by 183,463t CO₂e, compared to the previous year. However, clinker and lime production continued to generate a large percentage of its total operational emissions, at 96 per cent.

In May 2022 Adbri announced its Net Zero Emissions (NZE) Roadmap setting new medium-term emissions reduction targets for cement, lime and electricity, working towards the goal of net zero emissions by 2050. Collaboration with partners forms a key action of its Roadmap. As part of this, Adbri remains in consultation with government and regulatory bodies as they seek to embed emission reduction targets and measures into legislation, including the Safeguard Mechanism reform, according to the company.