Release Date: February 18, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: A year ago, the CEO and Chairman resigned due to issues within the company. Can you explain what went wrong and why we have to wait until June for more information? A: I can't speak to past issues as I wasn't here, but our focus is on moving forward and ensuring effective communication between management and the board to drive the business in the right direction.
Q: The New Zealand distribution division is down 5% to 10%. Is this due to market share loss? A: Yes, there has been some market share loss.
Q: What improvements are needed in the operating model to enhance customer and pricing focus? A: It's too early to provide detailed comments, but we are focusing on empowering business units to exceed customer expectations and using net promoter scores to identify areas needing improvement.
Q: Can you explain the significant decline in EBIT for the placemakers division despite a smaller revenue decline? A: The decline is due to high fixed costs from leased sites, market share loss, inefficiencies in delivering frame and trust, and a deviation from the operating model. We are addressing these issues with cost reductions and increased focus on supply relationships.
Q: Are you confident in operational improvements and volume recovery in the business cycle? A: We are not forecasting a boom in the second half of the financial year. The market remains volatile, and we are cautious about downside risks in materials volumes and residential development.
Q: Given the improvement in New Zealand volumes, why is guidance still for a 10% to 15% decline? A: The guidance reflects a range of volume outcomes across different businesses, with some areas experiencing more significant declines.
Q: How are you managing working capital given industry concerns about late GST payments? A: We have a credit management team working closely with customers, and while there is industry distress, we haven't seen elevated bad debts.
Q: Can you provide an update on the cost savings target and the impact on future costs? A: We initially targeted $180 million in cost savings but are now on track to achieve near $200 million. The ERP projects are on hold, and we are reviewing future requirements to ensure appropriate scale for our businesses.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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