Capral Limited (Capral), Australia’s largest extruder and distributor of aluminium products, releases its financial results for the 12 months ending 31 December 2023 (FY23). The full year underlying earnings were on par with the prior year’s record and ahead of guidance, driven by Capral’s diversified industry exposure and strong first half sales across the residential, commercial, and industrial sectors.

Key highlights:

  • Volume 71,100 tonnes (FY22: 71,800 tonnes)
  • Underlying EBITDA[1 & 2] up $0.3 million to $62.5 million (FY22: $62.2m) underpinned by solid market conditions and improved sales mix
  • Underlying EBIT[2] $39.5 million (F22: $40.8m)
  • Reported NPAT $31.8 million (FY22: $40.8m included income tax benefit $8.4m)
  • Underlying earnings per share[2] at $1.83 (FY22: $1.96)
  • Strong balance sheet with net cash of $59.5 million
  • NTA per share $10.03 (FY22: $9.14)
  • A fully franked final dividend of 35 cps declared, taking total dividends for FY23 to 55cps
  • Total distributions to shareholders 72.5cps (FY22: 70cps), included share buyback equivalent to 17.5cps
  • Exceptional safety performance maintained and good progress on sustainability initiatives

Commenting on the FY23 results and outlook for FY24, Capral’s managing director, Tony Dragicevich, said, “Delivering strong earnings for the third consecutive year is a very satisfying result and a reflection of how far Capral has progressed in leveraging on the investments made in our extrusion and distribution business units.”

“Capral has remained resilient in the face of higher interest rates and ongoing inflationary pressures that have impacted the broader market.

“Despite weaker residential volumes in the second half, our improved sales mix, combined with good productivity and margin management, kept underlying earnings at near record levels. Transport, cladding, and solar sectors remained strong throughout the year, and we expect continued strength in the industrial segment through 2024. The diversification of industries meant that demand for our products remained solid, allowing Capral’s manufacturing plants to operate efficiently.

“For FY24, ongoing inflationary pressures will have an impact on our cost base. Our key markets are forecast to remain firm with multi-residential expected to lead the recovery in housing commencements, and commercial and industrial to remain robust. The reduced pipeline in detached housing will impact volume and we expect the overall market to fall modestly in 2024.

“Absent any unforeseen events, FY24 Underlying EBITDA[1] should range between $50m and $54m, and Underlying NPAT between $23m and $27m. Capral will undertake an on-market share buy-back of up to 10% of its issued shares in 2024.”

[1] EBITDA is defined as Earnings before Interest, Tax, Depreciation and Amortisation, and in accordance with AASBI6, excludes rent payments

[2] Underlying EBITDA, EBIT, and Earnings Per Share (EPS) are adjusted for significant items (LME Revaluation and Income Tax Benefit)