DuluxGroup Limited

DLX Details

For the six months ended 31 March 2017, DuluxGroup reported 14.2% yoy increase in net profit after tax (NPAT) of $72.7 million on $881.2 million revenue over the 2016 first half. The result included a $3.1 million write-back of a tax provision established in previous years. Excluding this write-back, NPAT increased by 9.3%, and earnings before interest and tax (EBIT) increased by 7.8% to $106 million. Operating cash flow increased 76.2% due to higher earnings and improved working capital management, and cash conversion improved to 64% compared with 52% in the prior corresponding period. Net debt to EBITDA remains healthy at 1.5x. The result was led by strong revenue and profit growth in the Dulux ANZ business, which contributes approximately 70% of Business EBIT. Profits grew 7.1%, driven by retail market share gains, premium Dulux-branded mix and growth from the specialty coatings portfolio. Lead indicators for key markets remain largely positive, and core existing home renovation markets, which account for approximately two thirds of DuluxGroup revenue, are expected to continue providing resilient, profitable growth. The new paint factory in Melbourne is on budget and on schedule to commence production towards the end of the calendar year. The company expects that 2017 net profit after tax will be higher than the 2016 equivalent of $130.4 million. We maintain an “Expensive” recommendation on the stock at the current market price of $6.69
 

DLX Daily Chart (Source: Thomson Reuters)

Disclaimer
 
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.