Capral (CAA) H2 2024 earnings summary

Executive summary

• FY24 earnings exceeded the top end of guidance, driven by robust industrial demand and effective cost management, despite soft residential markets and inflationary pressures.

• Net profit after tax reached AUD 32.5 million, including a AUD 3.6 million tax benefit from deferred tax asset recognition, up 2% year-over-year.

• Maintained strong industrial sector performance, offsetting residential weakness, and continued to diversify exposure away from housing.

• Declared total shareholder distributions of AUD 0.76 per share, including a 40cps unfranked dividend and share buybacks.

• Two trade center acquisitions expanded the distribution network and contributed to earnings.

Financial highlights

• Revenue held steady at AUD 650 million, supported by higher metal costs and selling prices, despite a 5% decline in volume.

• EBITDA was AUD 58.3 million, down AUD 3.2 million year-over-year; EBIT at AUD 34.5 million, down 10% from FY23.

• Earnings per share rose to AUD 1.88, aided by share buybacks reducing shares on issue.

• Net cash position of AUD 68.9 million at year-end, with no working capital loans utilized.

• Free operating cash flow was AUD 21.5 million after capex and acquisitions.

Outlook and guidance

• FY25 earnings expected to be broadly in line with FY24, with residential recovery anticipated in the second half of the year.

• Industrial and non-residential markets forecast to remain steady; aluminium prices expected to stay elevated, increasing working capital needs.

• Inflationary pressures on wages, energy, and freight to persist, with ongoing focus on cost recovery and efficiency.

• Continued capital returns to shareholders planned via buybacks and unfranked dividends.