DuluxGroup profit drops four per cent
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Paint maker DuluxGroup has posted a lower annual profit but forecasts an improvement in its underlying performance in the year ahead.
The company's net profit in the year to September 30 of $89.5 million was down four per cent from $93.2 million in the previous year.
The result includes several one-off items relating to tax benefits and the costs of its acquisition of building products and garage door maker Alesco.
Excluding those items, net profit in the year to September was $79.6 million, up 2.6 per cent from $77.6 million the previous year.
DuluxGroup said it expects its net profit excluding one-off items in the 2012/13 fiscal year to be higher than $79.6 million, subject to economic conditions.
The company's sales revenue for the year of $1.07 billion was up 7.2 per cent on the previous year, due in part to the formation of a new business from the merger of DuluxGroup's China and Hong Kong businesses.
The previous year's sales were also negatively impacted by the impact of flooding on DuluxGroup's factory in the Brisbane suburb of Rocklea.
"DuluxGroup has been thoroughly tested this year by weak market conditions, changing competitor and retail customer landscapes, significant input cost pressure and increased operating costs as a consequence of the Rocklea flood," chief executive Patrick Houlihan said in a statement on Wednesday.
DuluxGroup declared a fully-franked final dividend of eight cents per share, up from 7.5 cents at the same time last year.