Paint company Dulux expects to improve its 2016 full-year net profit after receiving a 28.7 per cent lift in first-half result.
First-half profit rose to $63.7 million in the six months to March 31, up from $49.5 million in the same period the previous year.
Managing director Patrick Houlihan said a strong performance in its Paints and Coatings Australia and New Zealand division, which makes up around 75 per cent of Dulux’s earnings, had underpinned the result.
“Our Paints and Coatings ANZ business delivered strong profitable growth and is on track to reverse the first-half impact of the exit from Mitre 10 in New Zealand by the full year,” Mr Houlihan said on Tuesday.
Mr Houlihan said the business had stood up well to previously flagged challenges.
“Dulux is well-placed going into the second half for continued profit growth,” he said.
The company’s key market of 10 million existing homes in Australia was expected to continue providing resilient profitable growth, he said.
Dulux said that, subject to economic conditions and excluding non-recurring items, the company expects 2016 net profit after tax will be higher than the 2015 equivalent of $124.7 million.
Revenue for the six months to March 31 was up 1.7 per cent to $851.1 million, while underlying profit was up 3.7 per cent on the same period last year, when the net figure was hit by restructuring costs.
In the consumer and construction business, Dulux said its Selleys products maintained sales and record earnings in the first half and the Lincoln Sentry and B&D Garage Doors and Openers business were both delivering strong sales into the second half.