Metro Performance Glass - Highbrook Business Park Photo: SUPPLIED
Glass manufacturer Metro Performance Glass has posted a deeper full year loss, following a $10 million non-cash write-down in the value of its assets due to the softer outlook for the construction sector.
Key numbers for the 12 months ended March compared with a year ago:
- Net loss $10.5m vs $0.5m loss
- Revenue $263.5m vs $236.1m
- Net debt $60.1m vs $52.3m
- Underlying earnings $11.8m vs $5.9m
However, putting aside one-off items, its underlying earnings doubled as the company focused on managing costs and the strong performance of its Australian division.
Revenue improved 12 percent, with New Zealand up 5 percent and Australia 32 percent higher.
Chief executive Simon Mander said the company has made "good progress" to address inflation and supply chain pressures in New Zealand, while maintaining consistent service.
"While the challenges are expected to continue, our focus remains firmly on operational efficiency and positioning the company to meet the needs of a changing market dynamic," he said.
The Australian Glass Group (AGG) performed well despite the supply chain and labour challenges, Metro Glass said.
"We are really pleased with the sustained improvements in AGG's performance," Mander said.
"The results of our initiatives to turnaround the business were delayed by the Covid-19 period; however, the team has remained focussed on serving its customers and on robust financial disciplines which is reflected in the significant improvement in profitability."
Metro Glass said the number of residential consents issued in New Zealand has fallen from its peak and activity levels at the beginning of the 2024 financial year remained within expectations.
It said freight costs and disruptions were forecast to moderate, and combined with growing demand for low emissivity glass, the company expected an improved first half result for 2024.
With improved financial performance, the company forecast net debt to fall in the first half to be below $55 million.