Here’s how CSR’s (ASX:CSR) shares reacted to half-yearly results

Highlights

• Shares of CSR Limited were in the green zone after the company announced its half-yearly results today (4 November).
• CSR has reported total trading revenue of AU$1.3 billion in the last six months.
• The company’s NPAT has increased by 27% to AU$110.1 million.

Shares of the Australian building products company CSR (ASX:CSR) Limited reacted positively to its half-yearly results, published today (4 November) on the Australian Stock Exchange (ASX). The shares of CSR were trading 3.973% higher at AU$4.710 apiece as of 2:25 PM AEDT.

According to the company’s announcement, the CSR group reported total revenue of AU$1.3 billion in the HY23 ended 30 September 2022. CSR Limited registered 27% increase in its net profit after tax (NPAT before significant items) from the prior comparable period at AU$110.1 million. Additionally, the earnings per share jumped to 22.8 cents from 17.9 cents.

While CSR shares soared on the ASX thanks to the strong half-yearly results, the benchmark S&P/ASX 200 Industrials sector was down 0.572% to 6235.8 points at 2:25 PM AEDT today.

Highlights of CSR’s half-yearly results

The company’s ASX filing highlighted the below stats for the six months ended 30 September:

• CSR’s NPAT was up 27% from the prior comparable period to AU$110.1 million.
• The statutory net profit after tax dropped from AU$156.6 million in the previous corresponding period to AU$104 million during HY23.
• The company delivered earnings before interest and tax (EBIT before significant items) of AU$171.3 million during HY23, up 29%. This increase was driven by the below results:
  • Building products contributed to CSR's EBIT of AU$139.2 million, a 15% increase over the previous comparable period. According to the ASX filing, the improvement in building goods' EBIT was driven by cost control, price discipline, and outstanding execution across end markets. In addition, the return on invested capital also rose from 24% to 28%.
  • Regarding the property segment, CSR produced an EBIT of AU$27.6 million, largely due to the completion of the next tranche at Horsley Park in New South Wales.
  • Lastly, as increased raw material and input costs offset higher aluminium pricing, EBIT dropped from AU$18.3 million to AU$17.4 million in HY23.
• Foreign exchange volatility affected aluminium prices, which increased the company’s net finance costs from AU$5.9 million to AU$13.9 million.
• From a net cash position of AU$177.7 million at the end of March 2022, net cash declined to AU$142.1 million.

Talking about the half-yearly results, Julie Coates, managing director and CEO, CSR, said:

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Data Source: Company announcement dated 4 November 2022