BXB +7.07%: The global supply chain business delivered a good result today, at the high end of their FY23 guidance range, benefitting from falling input costs (mainly lumber), solid pricing and a good mix of earnings drivers, while they talked to positive momentum and ongoing improvements operationally i.e. there was plenty to like in today’s update.
FY23 sales grew 14% YoY (constant currency) to $6.08b thanks largely to higher prices which drove a 19% uplift in underlying profit to $1.07bn. For FY24, they expect sales revenue growth between 6-8% and underlying profit growth of between 9-12%.
- On 18.5x FY24 BXB is not cheap however if they deliver what they said, the outlook is solid and the valuation seems justified in MM’s view.
MM is now mildly bullish BXB following today’s results
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