Boral CEO Vik Bansal says high inflation will persist for another year and more price rises will come to offset it.
The cement, asphalt and gravel group says lower home building starts is now showing up in slower demand in the residential housing sector.
He aims to lift EBIT margins to above 10 per cent from 5.7 per cent in the December half.
Boral, which is 73 per cent owned by billionaire Kerry Stokes, won’t pursue acquisitions until it gets its own house in order.
Boral chief executive Vik Bansal says high inflation is likely to persist for at least a year with more price rises for cement, gravel and asphalt to come as the company offsets rising transport, wages and energy costs.
Residential construction was slowing as the building material manufacturer feels the pinch in that part of its business from lower home building approvals, which have fallen to their lowest point in a decade.
Loading...
Simon Evans writes on business specialising in retail, manufacturing, beverages, mining and M&A. He is based in Adelaide. Connect with Simon on Twitter. Email Simon at simon.evans@afr.com
