Industry News

Capral Aluminium delivers strong earnings for full year 2023

Capral has released its full year financial results for 2023.

Capral’s full year underlying earnings for 2023 were on par with the prior year’s record and ahead of guidance, driven by the company’s diversified industry exposure and strong first half sales across the residential, commercial and industrial sectors.

Capral delivered underlying earnings before tax, depreciation and amortisation (EBITDA) of $62.5 million, up slightly from $62.2 million in the prior year.

Underlying EBIT was slightly lower year-on-year (YOY) at $29.5 million compared to $40.8 million in 2022.

Reported net profit after tax (NPAT) of $31.8 million compares to $40.8 million in 2022, which included $8.4 million arising from recognition of deferred tax assets brought to account.

Revenues of $657 million in 2023 dropped by five per cent from the $693 million recorded in 2022.

This lower sales revenue, according to Capral, was primarily due to a 12 per cent reduction in average metal costs as a result of lower global aluminium prices (LME).

Commenting on the financial results, Capral Managing Director, Tony Dragicevich, said Capral has remained resilient in the face of higher interest rates and ongoing inflationary pressures that have impacted the broader market.

“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 committed to investing in growth and returning capital to shareholders going forward.

In 2024, the business will focus on growing its aluminium distribution business with the objective of increasing the volume and profitability of the company’s direct channel.

“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,” the company said.

“We continue to seek other opportunities to expand our footprint.”

In other news, a record amount of slope remediation and stabilisation work will take place along major roads in New South Wales this year.

The post Capral Aluminium delivers strong earnings for full year 2023 appeared first on Trailer Magazine.

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