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Boral results avoid construction hurdles



Boral has delivered sales revenue of $1.5 billion for its continuing operations in the second half of 2021, with concrete and quarries growing in spite of construction shutdowns and inclement weather.

The construction materials company saw its concrete volumes increase in Queensland, Victoria, South Australia and Western Australia. However, concrete volumes declined in New South Wales for an aggregate one per cent gain nationally.

Boral’s quarry volumes increased by four per cent but again fell short in New South Wales.

Boral chief executive officer Zlatko Todorcevski said the $1.5 billion revenue was a one per cent increase on the previous corresponding half.

“Boral reported revenue growth in its continuing operations, despite the impact of the construction shutdowns in the first quarter and exceptionally wet weather on the east coast during the second quarter,” Todorcevski said.

“Revenue benefitted from higher residential housing activity which was bolstered by government stimulus measures and improved infrastructure activity.

“There was, however, a less favourable geographic revenue shift away from NSW, where Boral has its strongest integrated position.”

The half year report followed Boral’s completion of its sale of the North American Fly Ash business to Eco Material Technologies for $1.05 billion.

This sale marked the completion of Boral’s divestment programs and realigned the business to focus on Australian construction materials, according to Todorcevski.

“Our strategy is to focus on our leading position as an integrated construction materials manufacturer and supplier in Australia, build on our competitive advantage and improve our performance and profitability to deliver higher returns for shareholders,” he said.

Earlier in February, Boral distributed $3 billion back to its shareholders in the form of a $2.65 per share capital return plus an unfranked dividend of seven cents per share.

The return of up to $3 billion in surplus capital was voted on at the company’s annual general meeting in late-October 2021.

The return of surplus capital followed the sales of its North American building products and 50 per cent owned Meridian Brick businesses, and the Australian building products businesses.

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