Paint supplier DuluxGroup Limited (ASX: DLX) released its annual results today and here are the key takeaways:
- Revenue up 1.7% to $1.7 billion
- Net profit after tax (NPAT) up 15.6% to $130.4 million.
- NPAT before non-recurring items up 4.6% to $130.4 million (2015 results included non-recurring items of $11.9 million after tax relating to restructuring the company's supply chain.)
- Final fully franked dividend of 12.5 cents up from 11.5 cents last year
The market's response to the result was muted with shares trading down 1% to $6.28 earlier this afternoon. At this price the stock carries a fully franked dividend yield of 3.8% which appears to be reasonable value for a company with such a powerful brand.
Dulux has grown NPAT and dividends every half since it was listed as a separate entity in 2010 and is forecasting further improvement in 2017. Although the company is somewhat exposed to the Australian housing sector which looks to be coming to the end of its cycle, only 15% of sales relate to new housing, with 65% related to home improvement.
Overall, this is another boring yet positive result for Dulux and whilst the stock isn't a screaming buy at today's prices, it represents a decent long-term investment given the high quality of the business.
