(Bloomberg) -- Fletcher Building recovered in the second quarter to post improved first-half earnings after Covid-19 restrictions in New Zealand and Australia hit the company hard earlier in the financial year. The stock rose the most since 2020.

Earnings before interest, tax and significant items rose 3% to NZ$332 million ($220 million) in the six months ended Dec. 31, the Auckland-based company said Wednesday. Second-quarter EBIT was NZ$264 million. 

“With improved operational performance and cost disciplines now embedded across the business, we were able to deliver a strong first-half performance,” Chief Executive Officer Ross Taylor said in a statement. “This was despite the first quarter being heavily impacted by the up to five week-long stringent lockdown in New Zealand and local lockdowns in Australia.”

Fletcher stock is headed for its best one-day gain since November 2020, rising 5.7% to NZ$6.64 at 10:30 a.m. in Wellington.

Taylor said the lockdowns reduced EBIT by about NZ$105 million in the first three months of the year. Offsetting that was NZ$47 million earned from sales of industrial developments.

Fletcher forecast full-year EBIT before items will rise to about NZ$750 million, from NZ$669 million a year earlier. 

“Our markets look robust, we expect to not see the significant impacts of lockdowns to reoccur, we remain on track to further improve EBIT margins,” Taylor said. Still, there is the potential for a negative impact from omicron as its takes hold in New Zealand and, based on the company’s experience in Australia, it sees a potential risk impact on EBIT of NZ$25 million to NZ$50 million, he said.

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