The company reported a significant increase in revenue in the first four months of the fiscal year
Fletcher Building has credited its significant revenue increase during the first four months of the fiscal year to a “robust” demand for new homes.
The construction giant reported gross revenues of $2.698 billion for the four-month period ending October 31, 2020 – a 1% increase from the $2.683 billion reported during the same period in 2019. Additionally, the group reported a pre-tax profit increase of 55% to $227 million, up from the $80 million it reported in the same period last year.
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In a statement, the group pointed to “resilient trading conditions” from New Zealand’s residential sector as one of the main drivers of its strong results. The country is currently experiencing a heated housing market, with property values continuing to increase into the summer.
“Demand for new houses has been robust, with 342 units taken to profit in the residential business, consistent with the group’s objective of achieving 700 to 800 house sales for the full year,” the group said in a statement.
“Through all the disruption and uncertainty of the past year, our people have adapted and responded superbly, maintaining a focus on delivering for our customers,” said Ross Taylor, chief executive officer of Fletcher Building. “We were heavily impacted in FY20 by the COVID-19 restrictions, resulting in a significant earnings loss for the group of $196 million, so we are pleased to have begun the new year well.”
