The shortage of new housing is worse than forecast, but a backlog of construction work will support a rebound in profits at bricks and roofing producer Brickworks, says managing director Lindsay Partridge.

The building materials group posted a 54 per cent drop in net profit after tax to $395 million, even after a 7.8 per cent rise in revenues to $1.18 billion for 2022-23. But that was outpaced by expenses, with energy costs up 28 per cent at the company’s key Austral Bricks division while labour costs rose 13 per cent.