- DuluxGroup released its first fiscal guidance under Nippon Paint today
- Net profits are at $68.2 million, a 4.1 per cent yearly increase
- Sales revenue is at $892.9 million
DuluxGroup broke radio silence today after releasing its first-half guidance for the financial year since its takeover from Nippon Paint.
Net profits are at $68.2 million for the six months ending 31 March, a $2.9 million or 4.1 per cent decrease compared to this time last year. Overall sales revenue was reported at $892.9 million, representing a 0.2 per cent increase in the Chinese consumer market.
Dulux rocked market headlines earlier this year when the company was bought out by Japan’s Nippon Paint in a $3.8 billion deal.
DuluxGroup Managing Director Patrick Houlihan says a strong second quarter offset the challenging, but expected, first quarter for the financial year.
“Overall, sales revenue and [earnings before interest] were flat for the half excluding last year’s favourable one-offs,” he said.
First quarter revenue shows a five per cent decline and second quarter revenue shows a six per cent increase. The company’s earnings before interest
“Our stronger second quarter trading, which has continued into April, gives us confidence about our second half and full year,” Patrick said.
The Dulux board has declared an interim dividend of 15 cents per share, representing a 7.1 per cent increase from 2018.
Record date for the interim and special dividends is set for June 24 with a payment date on June 28.
“Subject to economic conditions, and excluding non-recurring items and impacts associated with the Nippon Paint Scheme of Arrangement, we expect that 2019 net profit after tax will be higher than the 2018 equivalent of $150.7 million,” Patrick said.
The company will release a scheme booklet to shareholders later this year in June.
Dulux’s place in the market today remains virtually unchanged at a 0.05 per cent increase. Shares remain trading at $9.74 in a company market cap of $3.795 billion.