PROFITABILITY AND EARNINGS
Indicators of profitability showed divergent movements during the year. Increases in labour costs ($0.8b) and in purchases and selected expenses (up $2.3b, or 10%) exceeded the industry's increase in sales and service income. This depressed earnings before interest, tax, depreciation and amortisation (EBITDA), which fell by $624m (6%). On the other hand, the 30% increase (to $5.0b) in operating profit before tax (OPBT) largely reflects an increase of $1.8b (195%) in other income, which includes the effects of asset revaluations and sales. Compared to these movements, the 4% increase in IVA mentioned above was more subdued because neither labour costs nor other income contribute to IVA.
From 2004-05 to 2005-06 the estimated profit margin of the industry rose strongly, from 11.4% to 13.7%.
Print Page
Print All