Australia's largest extruder and distributor of industry-leading aluminium products, Capral, achieved full-year underlying earnings in 2023 that matched the previous year's record, surpassing guidance expectations. This accomplishment was propelled by the company's diversified industry presence and robust sales performance, particularly notable in the residential, commercial, and industrial sectors during the year's first half.
Capral exhibited resilience in its financial performance despite facing challenges such as higher interest rates and ongoing inflationary pressures, as Managing Director Tony Dragicevich stated.
The company reported underlying earnings before tax, depreciation, and amortization (EBITDA) of $62.5 million for the year, a slight increase from the previous year's $62.2 million.
However, underlying EBIT saw a slight decrease year-on-year, dropping to $29.5 million from $40.8 million in 2022. Reported net profit after tax (NPAT) was $31.8 million, compared to $40.8 million in 2022, which included $8.4 million from the recognition of deferred tax assets. Revenues for 2023 totalled $657 million, a five per cent decline from the previous year's $693 million, primarily attributed to a 12 per cent reduction in average metal costs due to lower global aluminium prices (LME).
The Managing Director 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,” he said.
“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.”
Capral is dedicated to both expanding its operations and providing returns to its shareholders in the future. Throughout 2024, the company will prioritise the expansion of its aluminium distribution division, aiming to boost both the quantity and profitability of its direct sales channel.
The Company said, “Over the past 18 months, we have added two aluminium centres to the Capral distribution footprint with acquisitions of existing businesses in North Brisbane and Wollongong, expanding our geographical presence. We continue to seek other opportunities to expand our footprint.”
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