Fletcher Building has reported a full-year loss of $227 million, with revenue remaining relatively flat at $7.683 billion compared to the previous year.
The company’s underlying profit, at $509 million, was at the low end of expectations and represented a 35 percent decline from the previous year.
The disappointing results were driven by a combination of slowing demand, inflation, and competitive pressures, with market volumes falling 25 percent in New Zealand and 15 percent in Australia.
Acting Chief Executive Nick Traber told state media the challenging macro-economic environment is expected to persist into the next fiscal year, with further market weakness anticipated.
The loss was largely attributed to a $117 million non-cash impairment related to the Higgins business and an additional $180 million in provisions for legacy construction projects.
Traber said that while the company faced difficulties, its residential and development division performed well, achieving strong profit margins and a 15 percent return on capital.
Fletcher Building is now exploring capital partnership opportunities for this division to fuel its next phase of growth. The company is also addressing ongoing issues with its Iplex subsidiary, particularly concerning plumbing matters in Perth, with legal action and negotiations currently underway.
Oh dear. Poor old boys. Looks like their satanic network s crumbling.
Hell yeah, lobbying the government to make a gib board ‘bracing’ wall section required in a concrete block wall for standard building practice and also controlling the gib board price/suppy during Convid they deserve to go down in flames. Lyall
Ahhh the NZ construction industry, home of mixed standards and grossly over priced materials, at times as much as 50% more than Australia. And it wonders why its profits are tanking…..
They are price gouging us and are still losing money? how?
The NZ public should make a huge protest !
Against the duopoly of the retail industry – an absolute joke that food prices are SO SO high .
The NZ public just suck it up .
Banks are posting huge profits . They pay tax and the rest goes offshore .
Building materials : the prices are a laughing matter .
Biggest problem in NZ is the citizens which are passive and so so soft .
Rise up ! Crush the gangs and the drugs . Get Jacinda back to NZ and trial her for all the Covid lies . Strike and bring the government to their knees . The meat industry is also controlled by an elite few . All the monopolies must be crushed 👍