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Highlights

  • FBU experienced a significant decline in FY24, posting a net loss of NZD 227 million, compared to an NZD 235 million profit in FY23.
  • FBU announced James Miller as a new independent non-executive director on 23 December 2024.
  • The company forecasts a further 10% to 15% decline in market volumes for FY25.

Fletcher Building Limited (NZX:FBU) is an NZX-listed retailer, manufacturer, partner and home builder in the construction and infrastructure sector. The company has reported a substantial decline in its performance in the financial year 2024 (FY24), impacted by slowing demand, inflationary pressures, and competitive market conditions.

Steep Financial Decline in FY24

In FY24, the company reported a net loss after tax of NZD 227 million, a sharp contrast to the profit of NZD 235 million in FY23. Earnings before significant items (EBIT) also saw a steep drop of 35.16% YoY in FY24, falling to NZD 509 million from NZD 785 million in the previous year.

Additionally, the company's market volumes declined significantly, with a 25% drop in New Zealand and a 15% decline in Australia. Despite the financial downturn, cash flows from operating activities increased slightly in FY24 to NZD 398 million from NZD 388 million in the prior year.

The company highlighted that after accounting for the discontinued Tradelink operations, it reported a net loss of NZD 227 million, a sharp decline from the NZD 235 million profit in FY23.

Key Business Updates

On 23 December 2024, FBU announced the appointment of James Miller as an independent non-executive director. Miller will also join the board of the company.

Strategic Outlook for Recovery

Looking ahead, Fletcher Building anticipates a further 10% to 15% decline in market volumes across its materials and distribution businesses in FY 2025 compared to FY 2024.

To address market weakness, the company remains focused on tight cost management and cash flow efficiency. The company aims to safeguard employees, fulfil customer commitments, and position its business for a market recovery when conditions improve.

Share performance of FBU

FBU shares closed at NZD 2.86 per share on 31 January 2025. In the past one year, FBU’s share price has recorded a drop of 34.50% and in three months, it has declined by nearly 4.99%.

52-week high if FBU is NZD4.64, recorded on 29 January 204 and 52-week low is AUD 2.61, recorded on 5 September 2024.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is January 31, 2025. The reference data in this report has been partly sourced from EODHD/Others.