Brickworks first-half profit drops 50%

Brickworks’ first-half statutory net profit has dived nearly 50 per cent on the back of a slowdown in building activity in Australia. 

The Sydney-based building materials manufacturer reported statutory net profit of $58 million for the six months ended January 31, down 49 per cent from a year earlier.

It also saw its underlying NPAT drop 37 per cent to $100 million, while revenue grew one per cent to $449 million. 

Brickworks chairman Robert Millner said the decline in earnings comes on the back of record underlying profit in the prior year period, and significant progress was made including an expansion into the United States. 

This would provide the company with additional diversification and prospects for long-term growth.

He also flagged an uncertain outlook.

“Clearly, economic conditions have deteriorated significantly over the past few weeks, following the rapid escalation of the coronavirus pandemic,” Mr Millner told the ASX on Thursday. 

The company announced a fully-franked interim dividend of 20 cents per share, an increase of one cent, or five per cent, on the prior period. 

AAP

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