Boral Ltds Shares Surge 9.15% After Robust Half-Year Results

Highlights:

• Boral Ltd (ASX: BLD) shares surged by 9.15% during afternoon trade on February 9, 2024.
• Robust half-year results reveal a 9.4% revenue increase and a significant 110.9% rise in EBIT.
• CEO Vik Bansal anticipates a stronger EBIT for FY 2024, with guidance upgraded to AU$330 million to AU$350 million.

Boral Ltd (ASX: BLD), a leading figure in the building materials sector, has grabbed attention with a remarkable 9.15% surge in its shares during afternoon trading on February 9, 2024.

Impressive Half-Year Results Drive Surge

Investors are closely monitoring Boral's performance following a significant 13% jump, pushing its shares to a 52-week high of AU$6.10. This surge comes on the heels of the company's release of robust half-year results, showcasing its financial strength and strategic vision.

Revenue Growth and Margin Improvement

Boral witnessed a notable 9.4% revenue increase during the first half of the fiscal year, reaching AU$1,839.9 million, primarily driven by strong price realization. Moreover, its EBIT saw a staggering 110.9% rise to AU$201.0 million, with a 520 basis-point improvement in margin, attributed to increased revenue and stringent cost management.

Underlying Net Profit and Dividend Decision

The company reported a remarkable 143.9% increase in underlying net profit after tax, amounting to AU$138.6 million. However, Boral's board opted against an interim dividend due to a low franking credit balance.

Management Commentary and Outlook

CEO Vik Bansal expressed satisfaction with the first-half results, highlighting operational improvements and cost management efforts. He expects a return to the typical first-half earnings weighting in FY24 and anticipates a stronger EBIT than previously guided. The updated guidance for FY 2024 forecasts an underlying EBIT in the range of AU$330 million to AU$350 million.

Share Price Performance

Following today's gain, Boral's share price has soared by an impressive 60% compared to the same period last year.

Conclusion

Boral Ltd's surge in share price and robust half-year results position the company favorably in the building materials sector. CEO Vik Bansal's positive outlook and strategic financial decisions contribute to Boral's promising trajectory in the market. Investors are optimistic about the company's future prospects amidst its strong performance.

Customer Notice:

Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.

Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com