BKW +0.37%: the building products company saw surging growth in their FY22 result today, however, the company was very cautious on the outlook as interest rates pressure construction globally. EBIT from the building products divisions in Australia and North America saw total growth of more than 200% to $155m, however, property sales were a significant driver of the growth. They have diversified their portfolio significantly, firstly with a joint venture with Goodman Group (GMG) for investment in industrial and manufacturing property as well as acquiring a number of smaller building product manufacturers in the US to spread geographic risk. The balance sheet and investment portfolio remain in great shape however the outlook for FY23 was pretty gloomy. The company noted forward sales should carry revenue through the first half, but a significant slowdown in construction activity is likely to weigh at the back half of the year.
MM is neutral to bullish BKW
Add To Hit List
