- Brickworks (BKW) share price has soared following the announcement of upgraded earnings before tax and interest (EBIT) guidance
- The ASX-200 lister is expecting to net between $240 million to $260 million in underlying EBIT in FY21, up from $129 million in FY20
- The increase is being credited to the rising value of its Property Trust however the business stopped short of releasing a net profit guidance
- Today’s news was enough to tip the company’s share price above the $23 mark in early morning and mid-afternoon trade
- BKW shares are trading up 11.3 per cent at $23.40 at 3:50 pm AEST
Brickworks (BKW) share price has soared following the announcement of upgraded earnings before tax and interest (EBIT) guidance.
The ASX-200 lister announced on Wednesday it was expecting to net between $240 million to $260 million in underlying EBIT in FY21.
By comparison, the building materials business netted $129 million in EBIT in FY20.
BKW has credited the increase to the rising value of its Property Trust, with the company’s share expected to be around $100 million.
Additionally, Brickworks said Building Products Australia and the North American market are both expected to record higher EBITs in FY21.
However the business has stopped short of releasing a net profit guidance, citing uncertainty around those Building Products and a lack of visibility of investment earnings.
BKW’s investment earnings are primarily driven by the company’s 39.4 per cent shareholding in Washington H. Soul Pattinson.
Commenting on today’s announcement, Brickworks Managing Director Lindsay Partridge said he was pleased with the Property Trust and Building Products results.
“We have seen strong demand and sustained growth in the value of our Property Trust over a number of years,” Mr Partridge said.
“The COVID-19 pandemic has only fuelled this growth, by accelerating industry trends towards online shopping and increasing the importance of well-located distribution hubs and sophisticated supply chain solutions.”
Meanwhile, today’s news has propelled the company’s share price above the $23 mark .
BKW shares were trading up 11.3 per cent at $23.40 at 3:50 pm AEST