Revenue rises for Adelaide Brighton in 2014

Australia’s Adelaide Brighton Ltd has released its results for the year ended 31 December 2014.

Highlights

• Revenue grew by 8.9% y/y to AUS$1337.8 million, aided by acquisitions and growth in a number of construction markets.
• EBIT improved by 11.1% y/y to reach AUS$247.5 million, boosted by profit growth in the company’s cement, concrete, aggregates and concrete products operations.
• Net profit after tax came in at AUS$172.7 million, up 14.3% on 2013.
• A record EBIT of AUS$247.5 million was recorded, representing growth of 11.1% y/y.
• Cement and clinker volumes grew by 3%.
• Lime sales volumes fell by 7% y/y, partially due to weaker demand from the non-alumina sector following the closure of some gold mines in 2013.
• Concrete and aggregate sales volumes improved, bolstered by recent acquisitions and higher demand from the residential sector in New South Wales and Queensland.
• Increased volumes and prices led to a 10.5% rise in revenue for Adelaide Brighton’s Concrete Product segment.

Cement and clinker

Revenues improved in Western Australia, the Northern Territory, New South Wales and Queensland, with total sales volumes rising by 3% y/y. However, demand was down in Victoria and South Australia.

An investment of AUS$60 million to upgrade the Birkenhead cement plant in South Australia and increase its grinding capacity generated incremental benefits of AUS$1.1 million last year. In Western Australia, the rationalisation of the company’s Munster clinker production facility commenced in early 2014. The site largely ceased clinker production in 1H14, with the manufacture of specialty products running until December 2014.

Following rationalisation at Munster, Adelaide Brighton saw an increase in the volume of cementitious materials it imported (including cement, clinker and blastfurnace slag). Imports reached more than 2 million t, accounting for 20% of the Australian market.

In March 2013, the company announced an expected loss of supply of around 120 000 tpy of cement to a customer in South Australia. However, this did not impact 2014’s volumes. A new agreement with this customer has been formed that will see Adelaide Brighton provide it with 25% of its cementitious materials requirements in South Australia. This agreement came into effect on 1 January 2015. A further contract has been agreed with this customer for the supply of at least 50% of their required volume in Western Australia.

Adelaide Brighton has also won contracts with two major customers in South Australia, utilising output from its Birkenhead cement plant.

Adapted from press release by Louise Fordham

Read the article online at: https://www.worldcement.com/asia-pacific-rim/26022015/adelaide-brighton-2014-results-highlights-414/