“Our teams in Australia and New Zealand are very excited to be playing a central role in driving forward the Aliaxis commitment to sustainability.”

Mark Nykiel, Divisional CEO, Pacific
Mark Nykiel, Divisional CEO, Pacific
Mark Nykiel

Divisional CEO, Pacific

We are proud to be playing a central role in pushing forward the Aliaxis commitment to sustainability, creating the innovative water and clean energy solutions our customers demand and society needs.

We have a superb opportunity to take positive sustainable action and we’ve made great progress in many areas this year, particularly in our contribution to the circular economy, on renewable energy and water efficiency.

Sustainability is a key focus for our businesses in Australia and New Zealand. We’re taking a lead in increasing the amount of recycled material in our products and enhancing the circular economy for plastics creating solutions that are fully recyclable at the end of their long lives. This work supports our Growth with Purpose target to quadruple the amount of recyclate in our products.

In 2023, we made good progress capturing new material streams as part of the plastics circular economy.

Our focus has been to identify and partner with key stakeholders to recycle and reuse polymers to create new, long life, highly engineered pipe systems, increasing the amount of recycled material in the new solutions we’re developing to address climate and water challenges.

Our ambitious recycling plans were given a significant boost during the year with the acquisition of Comspec, a leading recycler of plastic in New Zealand.

The transaction will help us build a much stronger supply chain for recycled plastic, both to meet our own needs and to help our customers achieve their environmental goals.

The transaction builds on the €7 million we invested in a joint venture with Waste Management New Zealand in 2022 to increase recycling capacity, a venture supported by grant funding from the New Zealand government, and which has seen the launch of a new research programme on recycling with the University of Auckland.

We’re investing heavily in modernising our plants in Australia, including building a sustainability hub at our Toowoomba plant, near Brisbane, where we will be producing a range of stormwater and drainage solutions, many of which include high levels of recycled content and are fully recyclable. Our new production unit is set to be completed in the final quarter of 2024.

Work is also continuing to transform our North Plymptom plant in Adelaide into a factory of the future through a €14 million investment that will increase capacity by 40% and introduce some of the highest levels of automation in Aliaxis.

Customers drive our innovation and product development, and we work closely with them to devise new solutions predominantly targeting the building, infrastructure, and agricultural markets.

We are focused on delivery and service improvement for our customers and a key measure has been our Net Promoter Score (NPS) results which have been on a consistently rising trend since 2021.

Our 2023 results saw a strong uplift in the Net Promoter Score (NPS) to 40, up from 33 in 2022, mainly driven by improved responsiveness from our customer-facing teams and improved delivery service.

We’ve successfully speeded up the process of innovation, through significant investment in our new product development resources across the region and also in part thanks to close links with our research hub in India.

In 2023, we continued to improve the proportion of sales we derive from new to market solutions, which now account for 9.7% of total revenue. Key products we’ve launched in recent years include our ARMA Electrical product range from Marley in New Zealand, StormFlo® stormwater solutions from Vinidex and various innovative valves ranges from Philmac in Australia.

We recorded a robust result in the region in 2023, despite unfavourable market conditions which impacted our sales.

New Zealand in particular suffered due to adverse weather conditions in the first quarter and challenges in the agriculture and infrastructure sectors that persisted throughout the year.

Despite a 5.6% decrease in revenues, recurring EBITDA grew by 6.6% on a like-for-like basis1, thanks to strong commercial management and the benefits we are seeing from our operational excellence programmes.

These strong results give us a great platform for continued growth as we continue to drive forward our sustainability goals.

Revenue

-5.6%

on a like-for-like1 basis vs. 2022

 

Recurring EBITDA

+6.6%

on a like-for-like1 basis vs. 2022

1 2022 adjusted on a pro-forma basis to reflect the impact of the acquisition of Harco Fittings LLC in April 2022, Aquarius Spectrum in August 2022, OptiRTC Inc. in November 2022, Lareter in December 2022, Zypho in May 2023, Valencia Fittings LLC in June 2023 and the discontinued operations in Russia in June 2022. Impact of FX excluded to reflect underlying performance at constant exchange rate.

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