The Big River Industries Ltd (ASX: BRI) share price is rocketing today following the release of the company's full-year results.
At the time of writing, the timber and building manufacturer's shares are up 31.89% to $2.44.
Big River share price storms higher following record revenue
Big River delivered its FY2022 results for the 12 months ended 30 June 2022. Here are some of the key takeaways:
- Revenue up 45.4% to a record $409.3 million
- Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) up 113.3% to $48 million
- Underlying net profit after tax (NPAT) up 191% to $22.7 million
- Earnings per share (EPS) up 989.1% to 26.03 cents
- Final dividend of 10 cents per share, fully franked, bringing the full year dividend to 15.5 cents per share, up 176.8%
What happened in FY2022?
Big River reported a superb financial performance with robust growth recorded across the entire board.
The group achieved revenue of $409.3 million, an increase of 45% over the previous financial year. This was reflective of a solid construction sector, particularly the detached housing market, that was still benefiting from the homebuilder package introduced during FY2021.
EBITDA pre-significant items leapt by 113% to $48 million. Big River highlighted that growth was experienced in every division and geographic region in which the business operates.
Notably, a combination of strong organic growth, better operating cost leverage and contribution from its recent acquisitions drove the result.
EBITDA pre-significant items margin grew from 8% to 11.7%.
Net Profit after tax pre significant items stood at $22.7 million, an increase of 191% compared to the prior reporting period.
What did management say?
Big River CEO Jim Bindon touched on the outstanding results, saying:
FY22 was a period of substantial growth and success for our company, but one that also presented major challenges for our staff, customers and suppliers alike. Covid-19 related illness put pressure on all staff, while major product shortages needed close and expert management. Significant weather events affected several of our sites, and inflationary pressure impacted everyone in the supply chain.
Despite all these challenges, record revenue, profitability, earnings per share and free cash flow was achieved, which was a testament to all our employees, customers and suppliers.
What's the outlook for FY2023?
Looking ahead, Big River advised that addressable market volumes are forecasted to grow modestly in FY2023.
The company has an extended pipeline due to project delays, and material and labour shortages. This continues to underpin the near-term outlook.
Like-for-like revenue growth in the first 8 trading weeks of FY2023 is 23.3% higher than the corresponding period.
In addition, freight and supply chain pressure is expected to continue easing throughout the year.
Big River share price snapshot
With today's strong gains, the Big River share price is up 14% in 2022.
For context, the S&P/ASX 200 Materials (ASX: XMJ) sector is up 0.8% over the same time frame.
Big River commands a market capitalisation of approximately $200.64 million.
