Fletcher Building Limited today announced its audited financial results for the year ended June 30, 2024 (FY2024). Group revenue of $7,683 million from continuing operations was flat year-on-year. Higher revenues in residential and development, and construction were offset by significantly lower revenues in the materials and distribution divisions. The Group recorded a net loss after tax of $227 million compared to a net profit after tax of $235 million in FY2023. At year end, net debt of $1.8 billion was better than guidance; with a strong liquidity of $1.1 billion.

“Market volumes declined materially in FY2024. In New Zealand, market volumes fell 25% and in Australia market volumes fell 15%, each compared to the first half of FY2023, resulting in substantial revenue declines in our materials and distribution businesses,” said Fletcher Building´s acting CEO, Nick Traber. “Offsetting this, despite a tough housing market this year, our New Zealand residential business sold 886 units, compared to 617 in FY2023,” he added. 

The statement noted EBIT before significant items from continuing operations of $509 million was a 35% decline on the $785 million of FY2023 but within guidance range. Trading cash flows from continuing operations and excluding legacy projects and significant items was $784 million, compared to $537 million in FY2023.

“Disappointingly, total significant items for continuing operations for FY2024 were $333 million. This was primarily due to a $117 million non-cash impairment and write-down in the carrying value of the Higgins business, and the $180 million additional provisions required on our legacy construction projects announced at HY2024,” Mr Traber said. “We remain focused on reaching a pragmatic industry response to the plumbing matters in Perth. Constructive negotiations continue and Iplex is intent on trying to reach an agreement in principle with the Government and key parties in the near term,” he added.

“We expect the year ahead to remain challenging, with macro-economic pressures likely to persist through the year. At this point, we are planning for FY2025 market volumes in our materials and distribution businesses to be 10% to 15% lower year-on-year compared to FY2024, however we remain vigilant to further market weakness. In this environment, we have a continued focus on tightly managing costs and cash flows. We will also focus on protecting our people, delivering on our promise to customers and positioning our businesses well for when our markets return to growth,” Mr Traber concluded.