Stripping out significant one-offs, Metro Performance Glass reported an after-tax profit of $2.1m. Photo: Google Maps
Glass manufacturer Metro Performance Glass has posted a half-year loss amid uncertainty in New Zealand's construction sector.
Key numbers for the six months ended September compared with a year ago:
- Net loss $9.2m vs $0.6m profit
- Revenue $130.2m vs $138.1m
- Net debt $52.8m vs $59.1m
- Net profit before significant items $2.1m vs $0.6m
- No dividend
The loss was largely down to a $9.1 million write-down of intangible assets in New Zealand, due to the negative outlook for the sector.
However, stripping out significant one-offs, the company reported an after-tax profit of $2.1m, while its net debt decreased $6.3m in line with its guidance.
New Zealand revenue fell 13 percent to $87m due to softer market conditions, which was partly offset by improved sales for Low Emissivity glass.
It said its profit margin also recovered due to easing supply chain pressures.
"It has been a challenging year for the New Zealand business, while supply chain volatility has eased, economic pressures have softened the construction sector," Metroglass chief executive Simon Mander said.
"These challenges are expected to continue, and our focus remains firmly on operational efficiency and positioning the company to meet the needs of a changing market."
Its Australian Glass Group continued to perform better, with revenue up 13 percent to $43.2m, while underlying profit rose 79 percent to $4.6m.
Metroglass announced the Australian division was up for sale earlier this year, and said the board was targeting an announcement in the near future.
"If a suitable deal can be concluded the board will bring the offer to shareholders at an extraordinary meeting in the new year," the company told the share market.
Looking ahead, Metroglass said New Zealand residential consents have declined, and while above long-term trends, demand for glass was significantly lower.
"Demand for construction materials decreased across the sector and forecasts remain uncertain for FY24. It is the company's view that these conditions are likely to continue until inflation pressures and interest rates ease," the company said.
It did not provide earnings guidance for the rest of the year, but said the New Zealand business would remain "cash positive".