ASX All Ordinaries building materials share Adbri Ltd (ASX: ABC) is tumbling on Tuesday after the company released its half-year results.
The Adbri share price fell 15% to an intraday low of $2.33 before recovering slightly this afternoon.
The ASX All Ordinaries share is currently trading for $2.37, down 13.7%.
Meantime, the S&P/ASX All Ordinaries Index (ASX: XAO) is up 0.44% at the time of writing.
The construction materials and lime producer reported a decent increase in revenue and profit during 1H FY23.
So, it's likely investors are disappointed that it has once again decided not to pay a dividend.
Let's review the numbers.
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ASX All Ordinaries share dumps dividend for a 2nd time
Adbri didn't pay a final dividend for 2H FY22, and now it won't pay an interim dividend for 1H FY23.
The company says it needs the extra funds to cover materially higher-than-expected costs for the Kwinana Upgrade project, and it also wants extra cash flow in light of its "elevated" leveraging of 2.3 times.
Here are the highlights of the report:
- Revenue of $926.4 million, up 14% on the prior corresponding period (pcp) of 1H FY22
- Underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $149.1 million, up 20.9% pcp
- Statutory EBITDA of $145.8 million, up 15.6% pcp
- Underlying net profit after tax (NPAT) of $52.1 million, up 12.8% pcp
- Statutory NPAT attributable to members of $49.8 million, up 3.5% pcp
- Capital expenditure $173 million, up 50% pcp
- No interim dividend
What else happened in FY23?
The abrupt departure of former CEO and managing director Nick Miller surprised the market in October.
In an announcement, the company said Mark Irwin would be taking over as interim CEO the very next day.
The company said:
The Board has determined that it is an appropriate time for a change in leadership and the Board thanked Mr Miller for his service, particularly during the challenges of Covid-19.
Investors smashed the ASX All Ordinaries share on the news, and it dropped 22% in one trading day.
CFO Theresa Mlikota resigned less than a month later.
In February, Adbri announced that Irwin would become the permanent new CEO.
What did Adbri management say?
CEO Mark Irwin said:
Adbri has delivered a strong first half performance. We have refocused the business, delivering double digit revenue growth and improved earnings.
Our refocus has seen the implementation of key initiatives which support a more resilient Adbri with strong cost and operational management disciplines.
What's next for this ASX All Ordinaries share?
Adbri said its priorities for the half ahead include further works on the Kwinana Upgrade project, which has a target commissioning date of 2Q FY24.
The company is also focused on reviewing lime operations, completing negotiations for a supply agreement with Independent Cement & Lime (ICL), and further improvements at its Birkenhead cement operations.
The company is expecting a similar trading environment in 2H FY23 compared to 1H FY23.
Adbri's capital expenditure bill was 50% higher than the pcp at $173 million. The company said it expects its full-year capital expenditure to reach between $330 million and $350 million.
Adbri share price snapshot
This ASX All Ordinaries share is up 2.9% over the past 12 months and up 3.9% in the year to date.
