Page 35 - HW September 2020

global eyes
Fletcher’s Aussie turnaround a work in progress
FLETCHER BUILDING’S AUSTRALIAN
operations continue to be a work in progress, last month reporting overall gross revenue of $2.8 billion, 6.6% down on the prior year, with an EBIT before signi cant items of $33 million, 57% down on the prior year.
e company describes the Australian division’s performance as “mixed through the year, with most businesses impacted by the sharp decline in the residential market, which saw commencements down approximately 20% on the prior year.”
To the positive, Building Products Australia saw “continued strong turnaround momentum” with both the Laminex and Fletcher Insulation businesses growing earnings despite subdued market activity and despite Laminex’s revenue falling by 7%.
Revenue in the Pipelines businesses (Iplex-Rocla) fell, thanks to delays
in key infrastructure projects and subdued residential subdivision activity,
resulting in a loss of $15 million in these businesses.
Distribution Australia revenue was down 4% while Steel Australia’s revenue was up 4% with share gains in the distributor and commercial segments.
Both businesses however reported reduced earnings, with ongoing pressure on price and margin, and Stramit was impacted by lower sales in the shed segment.
With its store footprint expansion and showroom and branch refurbishment programme largely completed, Tradelink’s focus on the SME segment “continues
to provide increased stability in revenue,
despite the residential downturn”. Oliveri’s earnings continued stable as a
result of favourable margin mix changes to the bathroom product range.
Capital expenditure in the year was $65 million, with key investments focused on automation and improvements in the manufacturing businesses and system upgrades in the distribution business.
Looking ahead, there will be new digital o erings which will build on the success of the Laminex e-commerce platform that has now delivered $100 million of online sales in less than a year.
www. etcherbuilding.com
Homebase signs long term deal to “fast forward” digital presence
EARLY THIS MONTH, Homebase announced a 10-year partnership with e-commerce specialist e Hut Group (THG) and its e-commerce services division, THG Ingenuity, to “transform the online shopping experience for customers”.
So, by Easter 2021, Homebase will have a brand new website, o ering
a range of interactive new features, including “before and after” pictures and design and style tools, on top of improved navigation, shoppable multi- product images, instant “add to basket”
functionality, and new payment options including PayPal and Google Pay and AI-driven recommendations for a more
personalised customer experience. Homebase CEO, Damian
McGloughlin, says the partnership “will signi cantly fast-forward our digital plans and create an incredible new shopping experience for customers.
“We have a unique opportunity to move with the rapidly changing retail landscape, and leapfrog ahead to an experience
that exceeds customers’ demands for online shopping that’s both easy and inspirational.”
www.homebase.co.uk www.thg.com/ingenuity/
MORE AT www.facebook.com/nzhardwarejournal
SEPTEMBER 2020 | NZHJ 33