Boral reports 17% YoY jump in revenue in FY23

Australia-based Boral has reported a 17 per cent YoY increase in revenue to AUD3460.6m (US$2267m) in the fiscal year ended 30 June 2023 (FY23). EBITDA over the same period advanced 38 per cent to AUD454.4m, while the EBITDA margin improved 196bps to 13.1 per cent. Boral’s underlying net profit after tax came in at AUD142.7m, up 304.2 per cent YoY, with adjusted earnings per share of 12.9c, a YoY increase of 303.1 per cent. 

According to the company, the growth in revenue was driven by increased volumes across all products and pricing tractions in all regions and products. The improvement in EBITDA was enabled by better cost control and price discipline leading to margin expansion. Underlying EBIT of AUD231.5m was up 106.3 per cent YoY and 118.5 per cent higher on an excluding property basis. 

In terms of sustainability, the company has updated its FY25 targets to establish an “achievable, yet ambitious, short-term” decarbonisation target of 12-14 per cent reduction in emissions from its FY19 baseline. Its chlorine bypass project at Berrima is reportedly well progressed with the process upgrade due to be completed in the first half of FY24 enabling an increase in alternative fuels to 30 per cent within current regulatory approvals. 

Key FY23 projects in the cement sector include the commissioning of the Geelong (VIC) cement facility and the Tarong (QLD) fly ash facility. Recycling is now established in Adelaide (SA) and will expand into broader material solutions nationally. In concrete, plants were upgraded in West Gosford (NSW) and West Burleigh (QLD). Quarries secured over 100Mt of reserves and commenced the upgrade of the Townsville quarry plant. 

Assuming there is no significant shift in market demand or price environment, Boral expects to deliver an underlying EBIT in the range of AUD270-300m in FY24.