CSR Limited announces full year net profit after tax (NPAT) of $146.1 million, up 17%

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    Strong result reflects improved performance in Building Products and increased Property
    contribution.
    Statutory NPAT of $146.1 million for the full year ended 31 March 2021 (YEM21), up 17% from
    $125.3 million in the previous year.
    Building Products – EBIT of $184.3 million up 8%, with EBIT margin increased to 12.0% from 10.7%.
    Strong cost control and operational efficiency offset the impact of slowdown in residential construction
    activity which declined 4% during the year.
    Property – EBIT of $54.2 million following completion of the next stage at the Horsley Park industrial
    development.
    Aluminium – EBIT of $23.4 million, consistent with previous guidance, down from $59.6 million. This
    reflected a sharp decline in aluminium prices at the start of the financial year due to COVID-19 volatility,
    which was partly offset by hedging and lower input costs.
    Significant increase in dividends reflects strong cash generation and Property proceeds
    • Final dividend of 14.5 cents per share (fully franked) declared. This compares to the previous year
    when no final dividend was declared due to COVID-19 cash preservation priorities. Full year
    dividend (excluding special dividends) of 23.0 cents per share (fully franked) up from 10.0 cents per
    share (50% franking) in the previous year.
    • Special dividend of 9.5 cents per share (fully franked) declared following settlement of the Property
    sale at Horsley Park.
    • Strong operating cash generation of $253 million, up 3%. Net cash position of $251 million at year
    end (prior to the $117 million final and special dividend payments to be paid in July 2021).
    Commenting on the result, CSR Managing Director & CEO Julie Coates said, “CSR performed very
    well during the year, reflecting the breadth of our businesses and strength of our offering across
    diverse construction segments and markets. We increased our earnings with a strong focus on cost
    control and operational efficiency which leveraged trading outcomes as residential building activity
    improved during the second half of the year.
    “The pleasing result was achieved while making important changes to reorganise the Building
    Products business. We are now well positioned to deliver our strategy across more complete
    customer solutions, optimising our supply chain and leveraging core capabilities across all products
    and markets. This will further diversify our business, enabling us to maximise market opportunities
    and drive future growth.
    “We also delivered on a further stage of the Horsley Park project, which is a great example of our
    ability to complete complex redevelopments. Our Property business is well positioned to deliver
    strong returns over the next 10 years and beyond.”
    2
    Regarding the outlook for the year ending 31 March 2022 (YEM22), CSR noted:
    Building Products
    • Detached (54% of revenue) – activity will be supported by HomeBuilder commencements with
    the extension of the timetable likely to extend the pipeline across calendar years 2021 and 2022.
    • Medium/High density (18% of revenue) – medium density market expected to be more resilient
    than the high rise market following the continued decline in high rise approvals since the previous
    peak in 2018.
    • Alterations and Additions (8% of revenue) – strong trade retail performance expected to
    continue (up 22% in the year to March 2021), complemented by larger value HomeBuilder
    renovation projects.
    • Non-residential (20% of revenue) – pipeline of approvals is down 9% (year to March 2021)
    following COVID-19 uncertainty over the last year. Weaker private commercial activity expected to
    be offset in part by continued elevated levels of social infrastructure spend.
    Property – Horsley Park site has $146 million in sale proceeds contracted over the next three years,
    including $18m of EBIT expected to complete in YEM22. Marketing continues on the final 12 hectare
    tranche at Horsley Park with work progressing on other projects. The valuation of CSR’s extensive
    Property portfolio has increased materially during the year due to the delivery of contracted transactions
    above expectations and strong demand for industrial sites in western Sydney.
    Aluminium – Strengthened forward hedge position in the second half of YEM21 to lock-in future
    returns. Based on significant hedge positions, EBIT for YEM22 expected to be in the range of $32 to
    $40 million, assuming all other revenue and cost areas (including coal costs) are unchanged.
    Overall, the diversity of CSR’s business provides resilience and performance will benefit from our strong
    position in the detached housing market.

    courtesy of Bell Direct
    ================================================================================================
    DYOR

    i hold CSR ( 'free-carried' )

    not the most exciting stock in the portfolio but hasn't become a money pit either

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    CSR profit up 17pct, HomeBuilder helping

    https://au.finance.yahoo.com/news/csr-profit-17pct-homebuilder-helping-021427678.html

    i hold CSR ( 'free-carried' )

    1 like
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    CSR Limited delivers half year net profit after tax (before significant items) of $86.6 million, up 30%

    CSR Limited (ASX:CSR) announces net profit after tax (NPAT before significant items) for the half year ended 30 September 2021 of $86.6 million, up 30% from the prior comparable period. Statutory net profit after tax of $156.6 million included a significant item relating to the recognition of $71.2 million in carry forward capital tax losses.

    This result compares to statutory net profit of $58.7 million in the prior comparable period. Trading revenue of $1.1 billion was up 6% with earnings before interest and tax (EBIT before significant items) of $132.6 million, up 41% which included the following results:

    • Building Products – EBIT of $120.6 million, up 25% reflecting positive conditions in the detached market, strong operational execution, manufacturing performance and good cost control in a COVID constrained environment.

    • Property – EBIT of $6.6 million was delivered following the Moss Vale site sale. The final transaction at Horsley Park was secured in July 2021. In total, this project is expected to generate proceeds of $408 million by the year ending 31 March 2025 (YEM25).

    • Aluminium – EBIT increased to $18.3 million, up from $6.2 million in the prior comparable period with performance reflecting improved spot pricing and hedged position.

    Interim dividend of 13.5 cents per share (fully franked) declared which is at the top end of CSR’s dividend policy. Consistent with CSR’s Property strategy which is actively unlocking value from its property assets, CSR has also secured the sale of the 41 hectare site at Warner, QLD with EBIT of ~$30 million expected to be completed in YEM23. Maximising the current market opportunity with strong execution, while progressing strategy and managing COVID disruption Commenting on the result, CSR Managing Director & CEO Julie Coates said, “CSR’s businesses have performed very well despite the ongoing impacts of COVID on our operations. In Building Products, we made the most of the positive conditions in the detached market. The team executed well to deliver a strong result underpinned by good manufacturing performance and ongoing cost discipline.

    Our first priority was to keep our people safe and minimise COVID disruptions at our sites and for our customers.” 2 / 3 “We have also made good progress across a number of key strategic initiatives. We continue to develop our customer solutions and supply chain opportunities in Building Products. And we are unlocking further value from our property assets and development capabilities, securing the final tranche at Horsley Park with expected proceeds in excess of $400 million from the 52 hectare site over a six year period.” “CSR continues to deliver strong cash generation to invest in growth opportunities in the business as well as returns for shareholders with the interim dividend at the top end of our dividend policy.”

    Outlook for the financial year ending 31 March 2022 Building activity during the period grew in line with expectations going into the year. Declines in high density and commercial construction partly offset the strong detached market.

    We expect activity in the second half which has fewer trading days than the first half to reflect the traditional seasonality of the building industry. Completion times for projects continue to lengthen, reflecting supply chain congestion, cost pressures and labour constraints which are impacting the broader industry. The diversified nature of Building Products across product, geography and end markets positions the business well for the second half and beyond.

    This is supported by continued focus on maximising market opportunity, executing strategy and maintaining cost and operational discipline while returning to more normalised levels of investment. In Property, EBIT for YEM22 is expected to be ~$34 million which includes completion of the next tranche of Horsley Park Stage 2 project which is on track to deliver EBIT of $18 million. In addition, EBIT of ~$11 million is forecast to be realised from smaller transactions at Chirnside Park, VIC and Thornton, QLD. In Aluminum, based on significant hedge positions, EBIT for YEM22 is expected to be in the range of $35 to $41 million, assuming all other revenue and cost areas (including coal costs) are unchanged. As aluminium prices have improved, CSR has significantly increased its hedge position for the next four years to provide more certainty of future earnings. In summary, CSR’s largest business, Building Products is performing well in the current market and progressing its strategy to diversify and grow the business for the future. Group earnings will also be supported over coming years by contracted transactions from Property and a strong hedge position in Aluminium.

    3 / 3 Half year results webcast details CSR will present its results for the half year ended 30 September 2021 at 10.00am AEDT time today, Thursday 4 November 2021, via webcast.

    courtesy of Bell Direct
    =======================================================================================================

    DYOR

    i hold CSR ( inherited , but added to and reduced as opportunities arrived ) ( and i participate in the DRP )

    the family acquired these when CSR took over Maryborough Sugar Refinery

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    CSR Limited delivers 20% increase in net profit after tax (before sig. items)
    24% growth in Building Products earnings reflecting strong operational execution
    and high demand
    CSR Limited (ASX:CSR) announces net profit after tax (NPAT before significant items) for the
    year ended 31 March 2022 of $193 million, up 20% from the previous year.
    Statutory net profit after tax of $271 million included significant items relating to the recognition
    of $86 million in carry forward capital tax losses. This result compares to statutory net profit
    after tax of $146 million in the previous year.
    Trading revenue of $2.3 billion was up 9% with earnings before interest and tax (EBIT before
    significant items) of $291 million, up 22% which included the following results:
    • Building Products – Record EBIT of $228 million, up 24%, reflecting strong detached
    housing activity driving higher volumes, improved factory performance and operational
    execution and continued cost discipline across all businesses. Return on funds employed
    increased to 27% from 21%.
    • Property - EBIT of $47 million, down from $54 million, which included the next stage at
    Horsley Park and the sale of 4.6ha of land at Badgerys Creek.
    • Aluminium - EBIT of $40 million, up from $23 million, reflecting higher aluminium pricing
    partly offset by higher production costs.
    Final dividend of 18.0 cents per share (fully franked) declared. This brings the full year
    dividend to 31.5 cents per share (fully franked) which is at the top end of CSR’s policy of 60-
    80% of net profit after tax (before significant items).
    Strong execution in disrupted market with continued progress on strategy
    Commenting on the result, CSR Managing Director & CEO Julie Coates said,
    “All of CSR’s businesses have performed very well during the year. In Building Products,
    our team worked hard to support the demand in residential housing with strong operational
    execution. The organisational change we have made streamlining the business over the last
    18 months along with the initiatives aligned to our supply chain strategy have supported our
    ability to deliver for CSR’s customers against a challenging backdrop.
    “We will continue to implement our strategy this year with increased investment at key sites
    to further improve productivity and optimise operations, as well as enhancing workplace
    safety and sustainability.
    2 / 3
    “Investing in our Property assets and our development capability is also a core part of our
    results with contracted sales secured for all stages at Horsley Park to deliver $408 million in
    proceeds over six years. Remediation work is also progressing on the 196 hectare site at
    Badgerys Creek adjacent to the new Western Sydney Airport.
    “CSR has also continued to deliver strong cash generation and returns for shareholders with
    the full year dividend at the top end of our dividend policy.”
    Outlook for the financial year ending 31 March 2023 (YEM23)
    The strong pipeline of detached housing projects is expected to continue in the year ahead
    as completion times lengthen with supply chain and trade capacity impacting the broader
    industry.
    Activity in the apartment and non-residential markets has improved after an extended
    slowdown in the last few years.
    Building Products is well positioned to continue to grow, with a clear strategy to drive
    improved performance from a strong portfolio of brands and customer solutions. In YEM23,
    the business expects to return to more normal levels of investment to support the delivery of
    its strategy.
    In Property, EBIT for YEM23 is expected to be ~$52 million which includes completion of the
    next tranche at Horsley Park as well as completion of the sale of the Warner, QLD site.
    In Aluminium, CSR has a significant hedge position for YEM23. At this early point in the
    year, an indicative earnings range for YEM23 of $33 million to $49 million is based on
    current pricing and cost scenarios. Significant aluminium price and cost volatility (in
    particular carbon based inputs) will impact the final result.
    In summary, CSR’s largest business, Building Products is performing well with the team
    working hard to meet high levels of demand in residential construction which is expected to
    continue in the year ahead. Group earnings will be supported by contracted transactions in
    Property over the next three years and an increased hedge position in Aluminium which
    extends to 2027.
    Full year results webcast details
    CSR will present its results for the year ended 31 March 2022 at 10.00am AEST time today,
    Wednesday 11 May 2022, via webcast.
    The webcast is available from CSR’s website at www.csr.com.au or Click here.
    This announcement has been authorised for release by the Board of Directors of CSR Limited.

    courtesy of Bell Direct
    =======================================================================================================

    DYOR

    i hold CSR ( inherited , but added to and reduced as opportunities arrived ) ( and i participate in the DRP )

    the family acquired these when CSR took over Maryborough Sugar Refinery

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