In light of its latest half-year results, Boral CEO Zlatko Todorcevski has said the company is progressing with its portfolio reset amid weaker market demand.
Boral’s half-year results to 31 December, 2020 saw the global company’s sales revenue drop by 9 per cent to $2.7 billion compared with the previous half year.
Boral Australia’s revenue dropped 8 per cent with 20 per cent lower earnings of $128 million.
According to Boral, lower volumes and prices due to reduced activity and a lower property contribution caused the decline.
However, the company’s operating cash flow is up by 65 per cent to $391 million.
Boral chief executive officer and managing director Zlatko Todorcevski said the company is moving forward with the reset of its business portfolio.
“While market conditions across the sector remain uncertain, we have made strong early progress to reset our portfolio of businesses, in line with our commitment to shareholders to transform Boral into a more agile, resilient and profitable company,” he said.
“Much work remains to be done but we are well on our way.”
Boral Australia is uncertain of its outlook for the remainder of the 2020-21 financial year, due to weakness in multi-residential and non-residential construction, while major projects are experiencing low concrete and asphalt demand.
“Our half-year results were impacted, as we expected, by a decline in multi-residential and non-residential construction activity in Australia, particularly in New South Wales, and the completion of a number of major projects, ahead of materials demand from new projects coming through,” Todorcevski said.
“We are in a good position to supply demand when activity in Australia picks up.”
Todorcevski said there is further potential to improve Boral with its current assets.
“As we announced late last year, our comprehensive portfolio review confirmed we have outstanding assets and positions, and importantly that there is a lot of potential to improve the performance of our businesses,” he said.
“Overall, our priorities are clear: the building of a stronger, better performing, more customer-focused Boral, with a portfolio of businesses that are delivering strong returns for our shareholders, in an organisation of proud and engaged people.”
To view the Boral HY results, visit the Boral website.