Paint company Dulux expects a mix of keen renovators and ageing Aussie houses to boost its full-year profit after a robust result in the first half of the year.
Dulux delivered a 29 per cent lift in the first-half profit on Tuesday and said the home segment, which makes up around two thirds of the company's revenue, should continue driving results.
Managing director Patrick Houlihan said the home renovation market had remained strong thanks to homeowners' liking for maintenance and renovation.
"We think we're well positioned for that resilience to continue," Mr Houlihan told AAP.
"We envisage nothing in the long-term to change that."
During 2015 the volume of renovations work in Australia was 4.4 per cent higher than the previous year, the Housing Industry Association's (HIA) latest Summer 2016 Renovations Roundup report says.
There are more than 4.6 million detached Australian homes which are more than 20 years old, many requiring repairs and renovations by home owners.
Dulux said first-half profit rose to $63.7 million in the six months to March 31, up from $49.5 million in the same period the previous year.
Revenue for the six months to March 31 was up 1.7 per cent to $851.1 million.
Mr Houlihan added that the new housing construction market, which makes up around 15 per cent of Dulux Group revenue, is expected to remain strong throughout the 2016 financial year as the rate of commencements and completions starts to slow.
"That would suggest it's a relatively slow softening and we think there's quite a big pipeline of work to be done," he said.
In the short to medium term there was still reasonable capacity in the multi-residential market, but nothing to suggest a hard landing in the sector.
Dulux expects to improve its 2016 full-year net profit after a strong performance in its Paints and Coatings Australia and New Zealand division, which makes up around 75 per cent of earnings.
Dulux has previously flagged up to 40 job losses at the company's Rocklea paint factory in Brisbane's south as it builds a new paint factory in Melbourne and Mr Houlihan said "in the order of 30 to 40 people's roles" are likely to be made redundant.
Dulux said that, subject to economic conditions and excluding non-recurring items, the company expects 2016 net profit after tax will be higher than the 2015 equivalent of $124.7 million.
The interim dividend was lifted half a cent to 11.5 cents, fully franked.
Dulux shares closed down 19 cents or three per cent at $6.22.
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