Brickworks Declares 10th Consecutive Increased Final Dividend

Brickworks Limited (ASX: BKW) has reported underlying Net Profit After Tax (NPAT) of AU$508 million for the year ending July 2023, with a statutory NPAT of AU$395 million. Despite facing rising interest rates, inflationary pressures, labor shortages, and raw materials supply issues, the company's earnings remained robust. Underlying EBITDA was AU$784 million, and EBIT was AU$709 million.

Property Division Shines

Brickworks' Property division saw notable success, with the sale of Oakdale East Stage 2 and ongoing Oakdale West Estate development. A revaluation gain was achieved despite increased capitalization rates. The Property Trusts' net assets rose by AU$520 million to AU$2,274 million.

Record Dividend Streak Continues

Directors declared a fully franked final dividend of 42 cents per share, marking the tenth consecutive year of dividend increases and 47 years since the last reduction. The final dividend's record date is November 1, 2023, with payment on November 22, 2023.

Building Products Face Challenges

Building Products Australia experienced challenges due to lower residential construction and supply chain cost pressures. Despite these challenges, the company implemented price rises and productivity initiatives to mitigate margin decreases.

Housing Crisis Requires Attention

Australia faces a significant housing shortfall, with over 70,000 dwellings needed as of June 2023. This shortage has led to record low rental vacancy rates, driving up housing costs. Brickworks' Managing Director, Lindsay Partridge, highlighted the need for skilled immigration, reduced taxes on newly constructed homes, and streamlined planning and approval systems to address the housing crisis.

Mixed Results in North America

In North America, revenue increased by 12% to AU$447 million, primarily driven by price increases and sales growth through the retail division. However, EBITDA declined by 18% to AU$40 million, including contributions from land sales. Excluding land sales, EBITDA was down 5% to AU$33 million.

Brickworks continues to navigate challenges while maintaining its commitment to delivering value to shareholders and addressing Australia's housing crisis.

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