Capral (CAA) H1 2024 earnings summary

Executive summary

• Australia's leading aluminum extruder and distributor, holding a 28% market share and over 1,000 employees, with annual turnover of ~$640 million.

• 1H24 results met expectations, with NPAT of $14.7 million, down year-over-year due to softer residential demand but solid industrial sector performance.

• Margins maintained through effective cost management and price increases, despite inflationary pressures.

• Continued investment in operational efficiency, product innovation, and sustainability initiatives.

• Completed acquisitions of Aluminium Trade Centre and Apple Aluminium, expanding national footprint and technical capabilities.

Financial highlights

• Sales revenue for 1H24 was $313 million, down 5% year-over-year; sales volume fell 6% to 33,500 tonnes.

• Underlying EBITDA was $28.7 million, down 9% year-over-year, and NPAT was $14.7 million, down from $16.6 million in 1H23.

• Earnings per share (EPS) at $0.83, down from $0.93 in 1H23.

• Net cash position improved 14% to $67.8 million as of June 30, 2024, with no debt.

• No interim dividend declared; $0.18 per share returned via buy-back in 1H24.

Outlook and guidance

• FY24 guidance unchanged: underlying EBITDA expected between $50–54 million, NPAT between $23–27 million.

• Industrial and commercial markets expected to remain firm; residential to stay soft through 2024, with recovery anticipated in 2025.

• LME aluminum prices volatile but expected to moderate in H2 2024.

• Inflationary pressures persist, especially in wages, energy, and freight.

• Ongoing on-market share buy-back of up to 10% of issued shares through 2024; potential for unfranked dividend at year-end.