Dulux is seeing strong growth for its paints in the booming new home market but soft sales associated with infrastructure projects.
The paint maker posted a 4% rise in sales to $836.87 million for the six months to March. Net profit was down 17.5% to $49.46 million because of non-recurring restructuring costs. Underlying profit was up 9.3% to $61.4 million.
Dulux is building a new factory in Melbourne and establishing a third party operated distribution centre in NSW.
The company says market growth in new housing was significantly stronger, up 17%. The commercial building business was slower, reflecting soft infrastructure markets.
Dulux’s largest operating segment, paints and coatings Australia and New Zealand, grew sales by 6.2% to $442.4 million.
Market indicators for key markets remain largely positive. Dulux expects 2015 net profit after tax will be higher than the 2014 equivalent of $111.9 million.
The new housing market, which is about 18% of group revenue, is expected to remain strong for the rest of the year.
The board has declared a fully franked interim dividend of 11 cents a share, a 10% increase.
Dulux shares were trading 2.9% down to $6.36.