New Zealand’s Fletcher Building’s annual profit drops 46% as conference center costs rise

New Zealand’s Fletcher Building’s annual profit drops 46% as conference center costs rise

New Zealand’s Fletcher Building on Wednesday reported a 46% drop in its annual after-tax net profit, due to increased provisions for the Auckland International Convention Center.

The country’s largest manufacturer of building materials has made an additional NZ$255 million ($151.73 million) appropriation for the New Zealand International Convention Center and Hobson Street Hotel (NZICC) project due to increased project costs.

Its annual net profit after tax was NZ$235 million, up from NZ$432 million the previous year. Analysts estimated an average of NZ$318.7 million, according to Refinitiv data.

“Going into fiscal ’24, we expect further narrowing in our overall volumes, and therefore we continue to focus on strong customer performance, cost control and pricing discipline across our entire business,” said CEO Ross Taylor.

The company declared a final dividend of 16 NZ cents per share, down from 22 cents last year.

($1 = 1.6807 New Zealand dollars)

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