Diversified investment company SGH lifted net profit by 16.7% to A$505.4 million in the six months to 31 December 2024 as it completed the $4.4 billion acquisition of building materials company Boral.
SGH, formerly known as Seven Group Holdings, said earnings before interest, tax, depreciation and amortisation (EBITDA) increased 8% to $1.098 billion and earnings per share rose 4% to $1.24 on revenue which was 2% higher at $5.5 billion in the first half of the 2025 financial year (HY25).
The company, about 60% owned by businessman Kerry Stokes, declared a fully franked interim dividend of 30 cents per share, up 30% on the previous corresponding period, to be paid on 10 April to shareholders on record on 11 March.
SGH said the 10% earnings growth in HY25 and positive outlook for its core sector exposures had increased confidence in its full-year guidance of “high single-digit EBIT growth expected in FY25.”
Managing Director and Chief Executive Officer Ryan Stokes said the result was driven by a disciplined focus on customer service, execution and operating leverage, which delivered revenue, margin and earnings growth.
Stokes said he was particularly pleased with Boral’s continued progress toward achieving ‘mid-teen’ EBIT margins.
“We remain excited about the opportunities we have long identified for further improvement at Boral,” Stokes said in an ASX announcement.
Revenue was driven by strong capital sales and service activity at mining and construction equipment supplier WesTrac, partially offset by marginally lower revenue at Boral and equipment hire company Coates.
EBIT increased 10% to $843 million due to earnings growth at Boral, oil and gas producer Beach Energy and WesTrac, which was delivered through disciplined execution and an ongoing focus on cost control.
SGH’s 40%-owned Seven West Media reported a 40% fall in interim net profit to $37 million on revenue which dropped 6% to $727 million due to a lower total television advertising market, partially offset by an increasing advertising revenue share.
SGH (ASX: SGH) shares closed on Monday at $48.66, down 44 cents (0.9%), capitalising on the company at $19.8 billion.
