Adbri increased sales volumes for all its products except lime in 2021 and managing director Nick Miller expects 2022 to be bigger and better.
The leading construction materials and lime producer increased its annual revenue by 8 per cent in 2021, up to $1.57 billion.
Miller said the company’s continued diversification allowed it to remain stable throughout a turbulent year.
“We have delivered a robust financial result in 2021, reflecting our geographic and sector diversity and our team’s disciplined focus on supporting our customers and executing our strategy,” he said.
“The results are particularly pleasing in the context of significant COVID-related challenges and disruption during the year.”
The drop in lime sales was due to a slowdown in supply to Alcoa of Australia, as an old contract approached the end of its life.
But this was rejuvenated in January when Alcoa added another year to the partnership, earning Adbri an additional $25 million-$35 million.
The reduced volumes towards the end of the previous contract were offset by new deals with South32, Northern Star Resources and OZ Minerals, reinforcing Adbri’s reputation for reliable domestic supply.
Miller said mining and construction demand was buoyant, while the construction materials sector was benefitting from a strong pipeline of infrastructure projects and residential construction approvals.
“We expect growth in underlying earnings, driven by increased contributions from cement, concrete, aggregates, masonry and joint ventures, as well as contributions from recently acquired assets such as Milbrae, Metro Quarry Group and Zanows,” he added.
These acquisitions proved their worth as concrete and aggregates volumes increased by 9 and 22 per cent, respectively, despite temporary construction industry restrictions in some states.
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