BORAL LIMITED For personal use only
Half-Year Financial Report
31 December 2021
Boral Limited
ABN 13 008 421 761
APPENDIX 4D | Boral Limited | ||||||||
ABN 13 008 421 761 | |||||||||
Level 18, 15 Blue Street | |||||||||
HALF-YEAR REPORT | North Sydney NSW 2060 | ||||||||
PO Box 1228 | |||||||||
only | North Sydney NSW 2059 | ||||||||
Telephone (02) 9220 6300 | |||||||||
Facsimile (02) 9233 6605 | |||||||||
14 February 2022 | |||||||||
www.boral.com.au | |||||||||
Name of Entity: | Boral Limited | ||||||||
ABN: | 13 008 421 761 | ||||||||
For the half year ended: | 31 December 2021 | ||||||||
Results for announcement to the market | |||||||||
use | Dec-2021 | Dec-2020 | |||||||
$m | $m | ||||||||
R venue from continuing operations | up | 1.5% | to | 1,500.4 | 1,478.7 | ||||
Revenue from discontinued operations | 883.3 | 1,237.4 | |||||||
Total revenue | 2,383.7 | 2,716.1 | |||||||
Profit from continuing operations before net interest expense, | |||||||||
income tax and significant items | down | (29.2%) | to | 82.9 | 117.1 | ||||
Profit from discontinued operations before net interest expense, | |||||||||
income tax and significant items | 154.8 | 148.3 | |||||||
personal | |||||||||
Profit before net interest expense, income tax and significant items | down | (10.4%) | to | 237.7 | 265.4 | ||||
Net interest expense from continuing operations | |||||||||
before significant items | (34.8) | (55.3) | |||||||
Net interest expense from discontinued operations | |||||||||
before significant items | (3.2) | (3.0) | |||||||
Profit before income tax and significant items | (3.6%) | ||||||||
down | to | 199.7 | 207.1 | ||||||
Income tax from continuing operations before significant items | (10.9) | (14.5) | |||||||
Income tax from discontinued operations before significant items | (44.2) | (29.1) | |||||||
Net profit before significant items | (11.6%) | ||||||||
down | to | 144.6 | 163.5 | ||||||
Significant items from continuing operations net of tax1 | (15.4) | (4.9) | |||||||
Significant items from discontinued operations net of tax1 | 895.0 | 8.3 | |||||||
Net profit | up | 513.7% | to | 1,024.2 | 166.9 | ||||
1. Refer Note 2 of the attached half-year financial report.
Profit before significant items is a non-IFRS measure reported to provide a greater understanding of the underlying business performance of the | ||||
G oup. The above disclosures are extracted or derived from the financial report for the period ended 31 December 2021, which has been | ||||
For | ||||
eviewed by Deloitte. The Independent Auditor's Review Report provided by Deloitte is included in the Half-Year Financial Report of Boral Limited | ||||
f r the half-year period ended 31 December 2021. | ||||
31 Dec 2021 30 Jun 2021 | ||||
Net tangible asset backing per ordinary security | $3.87 | $2.06 | ||
Dividends | Amount per security | Franked amount per | ||
security at 30% tax | ||||
Current period: Special | 7.0 cents | - | ||
Current and previous corresponding period: Interim - ordinary | - | - | ||
Record date for determining entitlements to the dividend | 7 February 2022 | |||
Comparative Period: Half Year ended 31 December 2020 | ||||
December 2021 - Half-Year Financial Report
Directors' Report
onlyThe Directors of Boral Limited ('the Company') report on the consolidated entity, being the Company and its controlled entities ('the Group'), for the half-year ended 31 December 2021 ("the half-year"):
1. Review of Operations and changes in state of affairs
The Directors' review of the operations of the consolidated entity during the half-year and the results of those perations are as set out in the attached Results Announcement for the half-year.
On 7 July 2021, Network Investment Holdings Pty Limited, a wholly owned subsidiary of Seven Group Holdings useLimited ('SGH'), obtained control of the Group with its off-market takeover offer concluding on 29 July 2021 and
r sulting in SGH obtaining 69.6% effective ownership in the Group.
During the period, the Group has appointed Deloitte Touche Tohmatsu as its auditor. This has been approved in the Annual General Meeting on 28 October 2021.
2. Names of Directors
The names of persons who have been Directors of the Company during or since the end of the half-year are:
personal | - Chairman, appointed 30 July 2021 |
Ryan Stokes AO | |
Kathryn Fagg AO | - Chairman, retired 30 July 2021 |
Zlatko Todorcevski | - Chief Executive Officer and Managing Director |
Peter Alexander | - Retired 28 October 2021 |
Jacqueline Chow | - Appointed 1 December 2021, effective 1 March 2022 |
Mark Johnson | - Appointed 1 December 2021 |
Karen Moses | |
Deborah O'Toole | - Retired 28 October 2021 |
Paul Rayner | |
Richard Richards | - Appointed 30 July 2021 |
Rob Sindel |
3. Lead Auditor's Independence Declaration
The lead auditor's independence declaration made under Section 307C of the Corporations Act 2001 is set out on page 28 and forms part of this Directors' Report.
For4. Rounding of Amounts
Unless otherwise expressly stated, amounts have been rounded off to the nearest whole number of millions of dollars and one place of decimals representing hundreds of thousands of dollars in accordance with ASIC Corporations Instrument 2016/191, dated 24 March 2016. Amounts shown as "-" represent zero amounts and amounts less than $50,000 which have been rounded down.
Signed in accordance with a resolution of the Directors.
Ryan Stokes AO | Zlatko Todorcevski |
Chairman | Director |
Sydney, 14 February 2022 |
1
Review of operations
Group financial overview
onlyuse
personalFor continuing operations, sales revenue of $1,500m increased 1%, with revenue up 3% on a comparable after adjusting for an Asphalt joint venture, now equity accounted but proportionally consolidated in the prior
comparable period (pcp). Revenue growth reflects stronger residential and RHS&B2 demand, despite the impact of COVID-related construction shutdowns in 1Q FY22 and exceptionally wet weather on the east coast in 2Q FY22. EBIT1 (excl. Property) of $78m decreased 23%, with benefits from higher revenue and Transformation initiatives more than offset by a $33m adverse impact of construction shutdowns, a $6m increase in energy costs, and other costs increases largely related to the $10m year-on-year impact of Boral's incentive schemes.
Net interest expense decreased 35% to $38m, reflecting the benefit of measures taken in FY21 to reduce and refinancebasis, our bank facilities, as well as the significant reduction in net debt following receipt of proceeds from divestments. The average financing cost on gross debt was 4.2% p.a.
ForIncome tax expense1 of $55m represents an effective tax rate of 27.6%.
Significant items: A pre-tax gain of $931m includes a $953m profit relating to discontinued operations matters, primarily relating to profit on sale of North American Building Products, offset by Transformation costs of $7m and SAP implementation costs of $15m.
Group operating cash flow of $185m decreased by 52%, reflecting lower EBITDA due to a part period contribution from North American Building Products and Meridian Brick which were sold in October 2021, and lower earnings from continuing operations in Australia, as well as increased working capital. Operating cash flow from continuing operations of $86m declined 22%, reflecting the impact of construction shutdowns on EBITDA.
A $3b return of surplus capital to shareholders was announced on 1 February 2022 and will be completed on 14 February 2022. The cash distribution, equal to $2.72 per share, includes a $2.65 per share equal capital return and a special unfranked dividend of 7 cents per share. Refer to page 7.
2
December 2021 - Half-Year Financial Report
Review of operations
Continuing and discontinued operations
A summary of continuing and discontinued results is provided in the table below, with detailed commentary on continuing operations on pages 5−6.
A$m | Sales revenue | EBITDA1 | EBIT1 | |||||
Figures may not add due to rounding | 1H FY22 | 1H FY21 | 1H FY22 | 1H FY21 | 1H FY22 | 1H FY21 | ||
Continuing operations: | ||||||||
Construction Materials | 1,498 | 1,477 | 202 | 227 | 94 | 116 | ||
only | - | - | 5 | 17 | 5 | 17 | ||
use | Property | |||||||
Unallocated (incl. corporate) | 2 | 2 | (15) | (14) | (16) | (16) | ||
Total continuing operations | 1,500 | 1,479 | 193 | 229 | 83 | 117 | ||
Discontinued operations: | ||||||||
Boral North America, USG Boral and Boral | 883 | 1,237 | 155 | 259 | 155 | 148 | ||
Australia Building Products | ||||||||
TOTAL reported (total operations basis) | 2,384 | 2,716 | 347 | 488 | 238 | 265 | ||
Discontinued operations |
personalBoral's 1H FY22 earnings for Boral North America (including Boral's 50% share of post-tax earnings in Meridian Brick) and Australian Building Products are reported under discontinued operations. Combined, discontinued operations contributed EBIT1 of $155m, compared with $148m in the pcp, with no depreciation expense on discontinued operations in 1H FY22 compared to $110m in the pcp.
On 21 June 2021, Boral announced it had agreed to sell its North American Building Products business for US$2.15b (~A$2.9b) to Westlake Chemical Corporation. The transaction completed on 1 October 2021.
On 18 December 2020, Boral together with its joint venture partner, announced an agreement to sell the Meridian Brick joint venture to Weinerberger for US$250m (US$125m for Boral's 50% share). The transaction completed on 6 October 2021.
On 6 December 2021, Boral announced it had agreed to sell its North American Fly Ash business to Eco Material Technologies for US$755m (∼A$1b). The transaction completed on 11 February 2022.
Boral's North American Building Products, Fly Ash and Meridian Brick businesses contributed $145m (US$106m) of EBIT, compared with $113m (US$83m) in the pcp.
On 26 July 2021, Boral announced it had agreed to sell its Australian softwood and hardwood Timber business for $64.5m. The transaction completed on 1 October 2021.
ForThe divestment of Boral's small Australian Roofing and Masonry business for $12m was completed on 1 November 2021.
Boral's Australian Building Products businesses (Timber, Roofing and Masonry) contributed $10m of EBIT, compared with $8m in the pcp.
3
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Boral Limited published this content on 13 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 February 2022 21:41:01 UTC.
