Boral (ASX:BLD) share price on watch as revenue falls

Boral's latest results come after a takeover struggle with Seven Group Holdings

| More on:
man looking through binoculars

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Boral Limited (ASX: BLD) share price is on watch this morning after the company's latest full-year results.

Boral share price on watch as revenue falls

Some of the key takeaways from the 2021 financial year (FY21) result include:

  • Revenue from continuing operations down 6% to $2.92 billion
  • Earnings before interest and tax (EBIT) excluding property up 11% to $157 million
  • Underlying earnings per share (EPS) from total operations up 42% to 20.6 cents
  • Return on funds employed (ROFE) down 50 basis points (bps) to 8.3%
  • No final dividend declared

The Boral share price is one to watch in early trade following its latest update.

What happened in FY21 for Boral?

Boral noted challenging market conditions in FY21 after reporting a 3% decrease in Roads Highways Subdivisions & Bridges (RHS&B) revenue. There was also a 7% decrease in the company's other engineering revenue during the year.

There was the arm wrestle again Seven Group Holdings Ltd (ASX: SVW) as the Aussie conglomerate lobbed a takeover bid for the Aussie building materials company.

Boral reported 201,000 total housing starts in FY21, up 16% from the prior year. That included double digit percentage growth across NSW, Queensland, South Australia and Western Australia.

What did management say?

Boral CEO and Managing Director, Zlatko Todorcevski, commented on the Group's progress during the year:

We have made substantial progress in our strategy to transform Boral into a stronger, better performing, more customer-focused organisation, with a core portfolio of businesses that deliver value throughout the cycle.

Our full-year FY2021 results reflect the mixed market conditions we are continuing to experience in Australia during the pandemic.

As we finished the last financial year there were encouraging signs of improving demand. However, the new financial year has started with early challenges as a result of pandemic-related lockdowns.

We expect that FY2022 market conditions will be mixed. Infrastructure activity, particularly road construction, is expected to improve slightly in the second half of FY2022 and moving into FY2023.

What's next for Boral and its share price?

Uncertainty and "mixed" market conditions were a theme of today's results. Boral said the impact of COVID disruptions in the first quarter of FY2022 may total around $50 million.

The Aussie building materials company is targeting FY2022 transformation benefits of $60 million to $75 million net of inflation, with capital expenditure of around $300 million.

The Boral share price has surged 37.8% in 2021 amid the ongoing takeover bid from Seven and is outpacing the S&P/ASX 200 Index (ASX: XJO) this year.

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Earnings Results

Man jumps for joy in front of a background of a rising stocks graphic.
Earnings Results

Catapult shines: 20% sales growth propels ASX tech stock to new 52-week high

A strong annual result from this tech player has caught investor attention.

Read more »

A man in his 30s holds his laptop and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.
Earnings Results

Xero share price leaps 8% on staggering earnings upheaval

A major turnaround in profitability is sending investors into a frenzy over Xero shares today.

Read more »

a construction worker sits pensively at his desk with his arm propping up his chin as he looks at his laptop computer while wearing a hard hat and visibility vest in a bunker style construction shed.
Materials Shares

Which ASX 200 stock just plunged 12% despite record full-year earnings?

It looks like an impressive report card but UBS doesn't like the FY25 guidance.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Earnings Results

ASX 200 tech stock lifts off on another record-setting half-year profit

Investors are bidding up the ASX 200 tech company following its half-year results.

Read more »

increasing rural asx share price represented by happy looking sheep
Earnings Results

Why is this ASX All Ords stock staying strong as profits crash 76%

How is this company's share price marching higher after mowing down more than three-quarters of its profits compared to a…

Read more »

Two men sit side by side on a couch with video game controls in their hands and expressive looks on their faces as they react to the action in front of them in a home setting.
Earnings Results

Guess which ASX 200 stock is surging 11% on an 'outstanding' result

This ASX gaming giant just posted a 17% jump in profits, and its shareholders are basking in the glory.

Read more »

Agricultural ASX share price on watch represented by farmer in field looking at tablet computer.
Earnings Results

Graincorp share price lifts off as dividend is maintained and debts plunge

ASX 200 investors are bidding up the Graincorp share price today. But why?

Read more »

Smiling elderly couple looking at their superannuation account, symbolising retirement.
Earnings Results

Why is this ASX 200 stock avoiding the market selloff and pushing higher?

Not all shares are falling with the market on Thursday.

Read more »