Vulcan Increases Guidance for FY 2022 on Strong Results in 9 Month

Australasia-wide industrial product distributor and value-added processor Vulcan recently announced a trading update for financial year ending 30 June 2022. Vulcan's overall revenue is up 34% year-on-year for the nine months to 31 March 2022 to approximately NZD 700 million. The company's steel segment revenue lifted 42% YoY while its metals segment revenue grew 21% YoY during this period. Overall sales volume recorded a 5% YoY increase for the same period. Steel volume lifted 6% YoY while metals volume grew 2% YoY during this period. Vulcan's Managing Director and CEO Mr Rhys Jones said "Despite disruptions caused by COVID-19 and adverse weather in Australia, Vulcan's operations and financial performance have remained strong in the past three months. The geopolitical uncertainty in Europe has added more volatility to global supply chains and product prices for many industries including the steel sector. We continue to focus on maintaining our high service level and product availability to support our customer needs."

For the nine months to March 31, the company reported NZD 645.3 million in unaudited revenue, a 34% YoY jump. In terms of revenue from its steel segment, Vulcan saw a 42% YoY lift for the period on 6% higher sales volume. For its metals segment, sales volume grew 2% and revenue 21%

Following the conclusion of stronger than expected trading between February through to third week of April, and reflecting on the balance of FY22, Vulcan is revising its previous FY22 earnings forecasts. Pro forma earnings before interest, tax, depreciation and amortization post-IFRS 16 was originally forecast at between NZD 194 million and D 204 million. The guidance range has now been increased by 20% to between NZD 236 million and NZD 242 million. The company also increased its pro forma net profit after tax guidance range by 25% to between NZD 136 million and NZD 140 million.

Vulcan Increases Guidance for FY 2022 on Strong Results in 9 Month

Strategic Research Institute

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