The Wagner Group’s half year results have revealed just how adaptable the industry is, as its gross profits increased by more than 30 per cent, thanks to increased revenue in the quarrying space, crossarm sales and Earth friendly concrete (EFC).
The Queensland-based construction materials supplier saw a decrease in pedestrian infrastructure and bridge sales, with no growth reported in the USA due to COVID-19.
But a testament to the growth and strength of the Australian side of the industry was seen in the performance of Wagners’ building products business. It achieved 26.9 per cent revenue growth on the prior corresponding period – to $155.8 million. According to the company’s investors presentation, it enjoyed the revenue increases thanks to improved transport, quarry, concrete and cement sales.
In the first half of 2021, Wagners has five operational quarry sites and two additional sites, and is currently overseeing five mobile crushing projects. It has increased production from investment in new quarry sites and has identified and undertaken increased activity in the resources sector.
Crossarm sales increased by 15 per cent over the half as governments invested in new infrastructure and Wagners invested in automation across the country, leading to higher productivity and a decrease in production costs.
Overall, Wagner’s earnings before interest, tax, depreciation and amortisation (EBITDA) were $18.6 million – a rise of 116 per cent on the corresponding period in 2019-20. The company’s EBIT was $10.3 million and its net profits after tax were $6.1 million.
The company’s outlook remains positive, as approximately 20,000 tonnes of CO2 emissions were saved through the use of Wagners’ Earth Friendly Concrete (EFC) product.
There has been an increased demand for the eco-friendly concrete in the United Kingdom and Europe. EFC uses no Portland cement and instead utilises the chemical activation of industrial waste by-products. The benefits of this, while reducing carbon emissions compared to Portland cement, are improved durability, lower shrinkage, earlier strength gain, higher flexural tensile strength and increased fire resistance.
On top of this win was an increase in overall cement sales over the half, as health restrictions eased and infrastructure continued to be a priority for governments.
Wagners was approached for comment on its results but did not respond before deadline.