Guess which little-known ASX share is rocketing 30% on 'outstanding growth'

This ASX share is shooting out the lights today.

| More on:
A drawing of a rocket follows a chart up, indicating share price lift

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

Key points

  • Big River shares rocket 32% to $2.44 on the back of the company's robust performance for FY2022  
  • Big River achieved record revenue of $409.3 million, up 45.4% due to both organic growth and acquisition contribution 
  • The board declared a final dividend of 10 cents per share to be paid on 6 October 

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:

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.

Motley Fool contributor Aaron Teboneras 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 Scott Phillips.

More on Earnings Results

Hand of a woman carrying a bag of money, representing the concept of saving money or earning dividends.
Earnings Results

Which ASX shares delivered the biggest profit jumps of the earnings season?

These companies revealed at least a 70% profit boost in their latest earnings reports.

Read more »

A man and woman sit next to each other looking at each other and feeling excited and surprised after reading good news about their shares on a laptop.
Earnings Results

Why this ASX 300 share is leaping 14% despite being branded a 'sell'

Falling profits are putting investors off the fund manager.

Read more »

A young male ASX investor raises his clenched fists in excitement because of rising ASX share prices today
Technology Shares

Life360 share price rockets 24% after smashing FY23 earnings expectations

This tech stock delivered a very strong result this morning. How strong was it?

Read more »

a man in a shirt and tie holds his chin in thoughtful contemplation and looks skywards as if thinking about something while a graphic of a road with many ups and downs unfurls behind him.
Earnings Results

What's with the Neuren Pharmaceuticals share price today?

The full market reaction to the Daybue developer's FY23 earnings report won't be seen until tomorrow.

Read more »

Two workers at an oil rig discuss operations.
Earnings Results

2 ASX energy shares going gangbusters on today's earnings results

The ASX energy shares are drawing investor interest today after releasing their half-year earnings results.

Read more »

Man pointing at a blue rising share price graph.
Earnings Results

This ASX 300 stock just jumped 12%! Here's why

The ASX 300 stock is impressing investors with its half-year earnings results.

Read more »

Shot of a scientist using a computer while conducting research in a laboratory.
Earnings Results

Mesoblast share price tumbles on US$32.5m half-year loss

This biotech continues to burn cash.

Read more »

Man and woman sitting at casino table playing poker
Earnings Results

Star Entertainment share price jumps 5% on strengthening outlook

ASX 200 investors are bidding up the Star Entertainment share price on Thursday.

Read more »