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Investing.com -- Shares of Forterra (NASDAQ:FRTA) (LSE:FORT) climbed by 4.5% as the company reported a strong start to FY25, with brick volumes increasing by 17% in January and February, outpacing the underlying market growth of 11%.
Forterra’s FY24 financial results matched the expectations set in the January 23 trading update. The company’s revenue saw a slight decline of 0.6% year-on-year (YoY) to £344 million, while adjusted EBITDA fell by 10.5% YoY to £52 million, slightly exceeding the consensus estimate of £51 million. Adjusted earnings per share (EPS) were down 33% YoY at 7.6p, albeit marginally above the consensus of 7.5p.
The dividend per share was reported at 3p, a 32% decrease YoY, aligning with consensus expectations. Free cash flow was recorded at £11 million, and net debt, excluding leases, stood at £85 million, as previously reported.
Looking ahead to FY25, Forterra has not provided specific guidance but is finalizing price discussions to counter cost inflation, with some price increases already implemented.
The consensus for FY25 suggests a 7% YoY increase in sales to £369 million and an 18% rise in adjusted EBITDA to £59 million. The company’s shares are trading at approximately 15 times the estimated FY25 earnings per share (EPS), with an expected dividend yield of 3.6% for FY25.
In response to the lack of explicit guidance for FY25, RBC analysts commented, "We continue to think this looks reasonable, particularly when considering that annualising January UK brick market deliveries would imply +7% yoy market growth alone, without considering any market further improvement or price increases."
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