- Profits up 84% to $52 million
- Earnings per share were 10.8 cents, also up 84%
- FY23 gearing expected to be higher
Peet (ASX: PPC) has released its full year results, with the company delivering an 84% increase in operating profit and statutory profit after tax, to $52.3 million. Earnings per share were also up 84%, to 10.8 cps, and dividends were 6.25 cents per share, up 79%.
PPC reported EBITDA of $86 million during FY22, compared to $58.1 million in FY21, with an EBITDA margin of 30%, compared to the margin in FY21 of 25%.
“Peet delivered a strong performance during FY22, with considerable growth in key financial metrics,” said Peet MD and CEO Brendan Gore.
“The material improvement in margins and profit was driven by price growth across the Group’s developing and selling projects, combined with the ongoing focus on cost management, the changing product mix and the continued focus on unlocking value by appropriately managing the Group’s significant landbank.
“This was supported by continuing favourable market conditions and consumer confidence during the majority of FY22, especially across the east coast business.”
| Operating profit and statutory profit after tax | $52.3 million | Up 84% |
| Earnings per share | 10.8 cents | Up 84% |
| FY22 dividends | 6.25 cps, fully franked | Up 79% |
| Revenue | $290 million | |
| EBITDA | $86 million | |
| Net cash inflows from operations (before acquisitions) | $80.1 million | |
| Gearing | 29.9% |
Demand for Peet’s products remained high throughout FY22, with sales improving slightly from FY21 results.
| FY22 | FY21 | Change (%) | |
| Sales | 3,163 | 3,142 | 1% |
| – Gross value of sales | $1.06 billion | $858.8 million | 23% |
| Settlements | 2,514 | 2,980 | (16%) |
| – Gross value of settlements | $674.3 million | $7u39.9 million | (9%) |
| Contracts on hand | 2,597 | 1,948 | 33% |
| – Gross value of contracts on hand | $930 million | $546.6 million | 70% |
“The significant increase in the gross value of contracts on hand as at 30 June 2022 to $930.0 million, compared with a gross value of $546.6 million at 30 June 2021, provides a strong starting position and visibility for FY23,” said Mr Gore.
During the financial year, Peet entered into several key transactions, including the acquisition of the remaining 50% of the Flagstone City (Queensland) project; securing the acquisition of 100% of the University of Canberra (ACT) project; the sale of the New Beith (Queensland) landholding, and securing two development management agreements with Renewal SA on two inner city sites in Adelaide, South Australia.
During FY22, Peet increased its cash inflows from operations (prior to acquisitions) to $80.1 million, and as at the date of the announcement,
Peet had cash and available debt facility headroom of $205 million and a weighted average debt maturity of more than three years.
Gearing for the company is expected to be above the target range of 20% to 30% in FY23 due to the level of construction activity required to deliver on the significant contracts on hand, the acquisition of the balance of the Flagstone City project, and the acquisition of the University of Canberra project.
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For full details, please see the company’s original ASX announcements and related documents.
