DuluxGroup H1 profit soars

Paint and home renovation group unveils 10c interim dividend, upbeat about FY.

DuluxGroup (DLX) is optimistic about its full-year performance after delivering an 87.7% rise in interim net profit after tax (NPAT) on improved sales and the contribution of a full six months of Alesco earnings.

In the six months to March 31, DuluxGroup posted a net profit attributable to members of $60 million, up from $32.2m in the first half of the previous year.

Net profit before recurring items, which strips out one-off items, most notably the contribution of Alesco earnings, came to $56.1m, a 33.6% increase on $42m in the previous corresponding period.

Stripping out non-recurring items and subject to economic conditions, the group said it expects full-year NPAT to come in above its 2013 result of $94.1m.

Revenue in the period totalled $804.5m, a 16.5% increase on the $690.8m recorded in the first half of 2013.

The group will pay a fully-franked interim dividend of 10c on June 20 to shareholders on the register at May 30.

The interim dividend was 25 per cent higher than the previous corresponding period's 8c payment.

The paint and home renovation group also supplies garden products, and its takeover of Alesco in December 2012 added building products and garage doors to its business.

Managing director Patrick Houlihan said DuluxGroup achieved strong sales growth in Australia and New Zealand in the first half of its fiscal 2014/15 year.

He said most lead indicators for the Australian market were largely positive, while growth in the New Zealand market was expected to continue.