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Highlights

  • Adbri is an ASX-listed construction material and lime producer, with plants and facilities in Australia
  • In 1HFY23, the company reported 14% YoY rise in revenue and 15.62% YoY growth in statutory EBITDA
  • Today, Adbri shares closed 0.49% lower at AUD 2.02 per share on Thursday

Adbri Limited (ASX: ABC) is an Australia-based construction materials and lime producing firm. The company manages 13 brands and over 200 plants and facilities across Australia. During the first half of the financial year 2023 (1HFY23), the company registered a 14% YoY rise in revenue to AUD 926.4 million.

During the reported period, statutory EBITDA increased by 15.62% YoY to AUD 145.80 million, underlying NPAT by 12.8% YoY and statutory NPAT by 3.5% YoY. The rise was backed by higher demand for its products, indicating the strength of the company’s offering and ongoing focus of customers.

Moreover, during the latest half, the commercial engineering and infrastructure sector remained buoyed, resulting in higher demand for aggregates and concrete on a YoY basis.

Top 10 shareholders of ABC

The top 10 shareholders of ABC have around 52.38% shareholding in the company. The highest stake is held by Barro Properties Pty. Ltd. with a shareholding of 32.95%, followed by The Vanguard Group, Inc, which hold 5.01% stake.

Recent business update

Through an ASX filing dated 13 November 2023, the company informed that UBS Group AG and its associated bodies, have ceased to become a substantial holder of the firm, effective from 9 November 2023.

Outlook

Given that the company is able to pass on the inflationary impact on costs to the end customer through price hikes, the company expects to see continuation of benefits from increased prices and cost discipline in 2HFY23 as well. These benefits are expected to drive EBITDA higher in 2HFY23, when compared to 1HFY23.

In FY23, the company expects to record capital expenditure of AUD 330 million – AUD 350 million.

Share performance of ABC

ABC shares closed 0.49% lower at AUD 2.02 apiece on 16 November 2023. With this, ABC’s share price has appreciated by 14.45% in the past one year and has recorded a fall of 26.81% in the last three months.

The 52-week high of ABC is AUD 2.82, recorded on 15 August 2023, while the 52-week low is AUD 1.52, recorded on 27 April 2023.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 16 November 2023. The reference data in this report has been partly sourced from REFINITIV.