Fletcher Building navigates challenging market conditions

Fletcher Building (ASX:FBU) held its 2024 Annual Shareholders' Meeting, reporting key updates on trading performance and financial results. The company faces a challenging environment, with significant declines in residential construction in New Zealand and Australia. Despite these challenges, Fletcher Building is committed to cost-saving measures and strategic initiatives to stabilize financially.

Fletcher Building's strategic response and future outlook

Fletcher Building is facing a significant downturn in the residential construction market, leading to a 35% decrease in EBIT from continuing operations and a net loss after tax. The company is addressing these challenges through cost reductions, cash flow management, and strategic initiatives. In FY25, Fletcher Building anticipates a continued decline in market volumes but expects improvements in EBIT in the second half due to cost savings and seasonal variations. The company has raised $700 million in equity to repay debt and improve financial stability. Leadership changes and board renewal are also underway, with a strong focus on health and safety, sustainability, and customer satisfaction. Fletcher Building aims to strengthen its balance sheet and position itself for future growth despite current market challenges.

Executive insights on Fletcher Building's strategy

Acting Chair Barbara Chapman announced her intention to step down upon appointing a new Chair. Andrew Reding, MD & CEO, emphasized the company's long-term potential and commitment to delivering through the cycle. Refreshing the leadership team and board remains a priority.