Capral (CAA) H2 2023 earnings summary

Executive summary

• FY23 underlying EBITDA was $62.5m, slightly above FY22’s $62.2m and ahead of guidance; stronger mix, productivity and margin management offset softer H2 residential demand.

• Revenue fell 5% to $656.9m and volume declined 1% to 71,100 tonnes, mainly reflecting lower aluminium prices.

Financial highlights

• Underlying EBIT was $39.5m versus $40.8m; underlying NPAT was $32.9m versus $34.6m, and underlying EPS was $1.83 versus $1.96.

• Reported NPAT was $31.8m versus $40.8m; FY22 included an $8.4m deferred tax benefit, while FY23 recognised none.

• Operating cash flow rose to $75.0m from $7.1m, supported by lower inventories and working capital.

Outlook and guidance

• FY24 underlying EBITDA guidance is $50m–$54m and underlying NPAT guidance is $23m–$27m, absent unforeseen events.

• Residential commencements are forecast to recover slightly, led by multi-residential; detached housing is expected to weaken further, while commercial and industrial markets should remain relatively firm.

• Planned FY24 capital expenditure is $10m; priorities include NSW plant productivity, the second stage of the Penrith upgrade and distribution growth.