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BRI is a vertically integrated manufacturer and distributor of timber, panels and building products. The business was founded over 100 years ago in Northern NSW, staying within the founding family’s ownership up until its ASX listing in 2017. BRI has grown its product base, geographic reach and scale to today generate sales of >$350 million via 27 sites across Australia and New Zealand, employing >640 staff.
As stated above, BRI manufacturers and distributes timber, panels and building products. Key to the BRI strategy is the pure focus on trade customers/ clients as opposed to DIY or retail customers. 19% of BRI’s revenue is manufactured by BRI, with another 16% directly imported by BRI and the balance sourced from large local supply partners. From its latest revenue mix perspective, 40% is related to detached housing, 23% to commercial projects, 17% to multi-residential dwellings and the balance split between three further segments including alterations and additions.
The competitive advantage of BRI essentially boils down to two main principles. The first of these is the BRI network of 27 sites across Australia. This allows BRI to service both smaller trade clients, and large clients who have networks across the country and want to rely on a small number of suppliers. Secondly, BRI’s scale provides several advantages including a broad stock range which can meet most customer needs, competitive pricing for customers due to BRI’s consolidated buying power and finally the diversified supply that BRI can source which generally means customers will not be waiting extended periods for product supply for current construction projects.
As a small player in a large industry, we believe BRI has a significant runway for future growth both organically and inorganically, just as Reece Plumbing (ASX: REH) and Tradelink did many years ago within adjacent industries.
BRI Panels Business Projects (Ord Minnett Presentation, October 10th 2023)
Australian General Building Supplies Market (BRI Investor Day Presentation, 14th June 2020)
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