Capral Limited, manufacturer and distributor of fabricated and semi-fabricated aluminium and associated products in Australia, has reported strong result for H1 2023 that has outperformed expectations.
As per the report, the company’s net cash stood at $41.2 million at the end of the year’s first half and net profit after cash at $16.6 million. However, this is to be noted that Capral’s net profit for H1 recorded a plunge of 25.2 per cent year-on-year from $22.2 million, attributed to the sluggish LME aluminium benchmark price.
Lower sales volume was also another reason for the drop in Capral’s H1 net profit. Sales volume stood at 35,600 tonnes at the end of June, down by 2 per cent from the same period last year.
Meanwhile, Capral’s underlying EBITDA showed a slight rise from $31.6 million in H1 2022 to $31.7 million in H1 2023. A steady graph was also seen in Capral’s underlying EBIT at $20.7 million in H1 2023 versus $21 million in H1 2022.
Tony Dragicevich, managing director and CEO of Capral, said: “Capral has delivered a strong result in the first half of 2023 by playing to our unmatched strengths across the construction and industrial sectors.”
The company outlined its diverse industry exposure in the H1 result, particularly in transport and commercial construction.
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Tony Dragicevich also said, “We have the ability to more effectively partner with customers to provide bespoke and innovative intermediary solutions through the largest footprint of manufacturing sites and distribution centres in Australia. This has allowed us to create additional higher-margin solutions to generate a favourable sales mix, and thereby maintain profitability at close to record levels.”
According to CEO, Capral is also in a better position to adopt the forthcoming changes around energy efficiency in the National Construction Code after all the long-term investments through the past year.
Capral is Australia’s first and only ASI-certified extruder. In June 2023, the company bagged dual certification from the Aluminium Stewardship Initiative for all its 26 facilities spread across every state and territory in Australia.
“As Australia’s only ASI-certified aluminium extruder, and leading the industry on making its aluminium value chain more sustainable, Capral will keep building on its strengths and optimise its supply chain to meet increased demand for sustainable aluminium products due to regulation and evolving customer needs,” Dragicevich noted.
In July 2023, the company marked another milestone by receiving the first ASI Chain of Custody-certified cargo from Aluminium Bahrain B.S.C. (Alba). The accreditation ensures that the aluminium in its products is ethically sourced and processed by the highest environmental, social, and governance criteria.
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