Explosives maker says outlook strong despite profit fall

Summarised from 2 outlets · Updated 9 Nov, 01:56 · Archive

Australian explosives maker Dyno Nobel reported a full-year net profit of $331 million, down 22 per cent, but said demand for metals remains strong.

Dyno Nobel, which makes and sells commercial explosives for industries including mining, reported a full-year net profit of $331 million, excluding material items, down almost 22 per cent from a year earlier. After including remediation costs from the sale of its Phosphate Hill fertiliser business in northwest Queensland, bottom-line profit for the 12 months to September 30 was $66 million, swinging from a $53 million loss.

Total earnings before interest and tax came to $485 million, with the company targeting growth to $600 million by fiscal 2028. Chief financial officer Nitesh Naidoo said demand for commodities should remain robust, citing expected growth in copper material moved of around 50 per cent from 2021 to 2031, and projections of more than $1 trillion in AI-related infrastructure investment over the next three to five years.

Investor confidence appeared shaken, however, with shares tumbling 8.1 per cent to $3.51 after US mid-term elections and concerns about technology company debts sparked a sell-off in tech stocks. Naidoo downplayed concerns about a change in the political landscape, saying the company had seen no sign of change to the megatrends driving demand.

How it is being reported

• Explosives maker touts strong tailwinds as profit slipsRecent jitters around artificial intelligence infrastructure shouldn't impact trending demand for the metals builders require, a major explosives maker says.The West Australian · 9 Nov, 01:38
• Explosives maker touts strong tailwinds as profit slipsRecent jitters around artificial intelligence infrastructure shouldn't impact trending demand for the metals builders require, a major explosives maker says.Perth Now · 9 Nov, 01:38

In this story: Dyno Nobel · Nitesh Naidoo · Phosphate Hill · Queensland · Australia

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