CSR Limited, a major Australian industrial company, has reported a net profit after tax (NPAT) of $225 million for the fiscal year ended 31 March 2023, up 17 per cent from $193 million the previous year.
The ASX-listed company also unveiled $219 million in statutory net profit after tax, compared to $271 million the prior year, with an $86 million advantage from carry-forward tax losses.
On the segments front, Building Products EBIT grew 20 per cent, demonstrating good end-market execution, disciplined price and cost management.
Return on funds employed rose 31 per cent from 27 per cent.
CSR Managing Director and CEO Julie Coates attributed the positive figures to the company’s strong performance.
In building products, the employees generated another outstanding result by optimising CSR’s manufacturing operations and distribution networks to better serve its customers, maintain pricing discipline across the business, and focus on cost management.
“All of the Building Products businesses increased revenue with good execution into end markets and strong performances from Gyprock and Bradford as well as Hebel, which is continuing to increase market share with its faster build times and large installer base,” Coates explained.
The EBIT of the Property Business expanded to $72 million after the conclusion of six major transactions in the reported period.
“This was the highest result in Property over the last 15 years and highlights the strength and depth of CSR’s Property team to deliver complex transactions with long lead times, as well as the significant value of our property assets which are currently valued on an “as is” basis of $1.5 billion,” the CEO said.
Meanwhile, Aluminum’s EBIT declined from $40 million to $8 million as a result of growing aluminium prices that were partially offset by rising raw material expenses including coke and pitch which reached historic highs during the year.
According to Coates, the firm has benefited from its initiatives in reorganising the company, strengthening its supply chain, and emphasising client solutions, which have helped it capture profits in a volatile market environment.
On the outlook front, in Property, YEM24 will consist of $44 million in contracted earnings for the next tranche at Horsley Park, with a further $58 million in contracted earnings in YEM25.
In Aluminium, on the back of cost volatility and unpredictability in energy and raw materials, the best estimate for YEM24 is a loss in the range of $5 million-$15 million.
Aluminium is anticipated to return to profit in YEM25 and rise in the following years because of increased hedged pricing based on current cost assumptions.
Overall, the company said its s operations are well-diversified across brands, market categories, and the construction process, and its product line can be adjusted to meet changing consumer demands.
