Adbri’s revenue hit by lower demand in 2020

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Australia: Adbri’s revenue fell by 4% year-on-year to US$1.15bn in 2020 from US$1.20bn in 2019. Underlying earnings before interest, taxation, depreciation and amortisation (EBITDA) decreased by 3% to US$216m from US$222m. Despite construction growth in Western Australia, cement volumes were reported as being down by 7.1%. The company said that clinker volumes dropped by 23% due to lower offtake by its Sunstake Cement joint venture partner Boral. It added that the impact of the coronavirus pandemic had been ‘well managed’ and that all sites remained operational.

“In the context of the challenging operating environment, the financial outcomes we delivered for the 2020 financial year are better than we had expected and reflect the successes of our cost-out and business improvement programs. Adbri also benefitted from improving demand in the Western Australian market during the period which offset slowing demand in east coast markets, particularly in New South Wales,” said Nick Miller, Adbri’s chief executive officer.

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