Targeted investment drives CSR manufacturing

Building products group CSR has announced a net profit after tax for the financial year ended 31 March 2024 of $240 million, up seven percent on the previous year.

Statutory net profit after tax was $231 million on flat trading revenue of $2.6 billion while group earnings before interest and tax (EBIT) was $332 million, up one percent, with building Products EBIT of $294 million, up eight percent.

CSR Managing Director & CEO Julie Coates said the manufacturing results reflected strategy execution with price discipline to recover higher input costs as well as improved factory efficiency and operational performance. EBIT margin was 15.5 percent, up from 14.9 percent.

Coates said: “CSR’s core Building Products business has delivered record earnings driven by pricing and cost discipline together with strong operational performance supported by the execution of our strategy.

“The incremental investments in manufacturing are improving productivity and efficiency and the benefits of our supply chain investment across transport management and integrated business planning have underpinned the result.”

The company’s property EBIT was $91 million, up from $72 million following the settlement of two contracted Horsley Park, Sydney sales.

Meanwhile CSR’s aluminium EBIT was a loss of $29 million due to significantly higher energy and coal pass-through costs.

“As anticipated, the performance of our Aluminium interest was impacted by significantly higher energy and coal-pass through costs.

“However, input cost pressures have eased, and earnings have improved from a first half loss of $24 million to a $5 million loss for the second half, with the business turning a profit in the month of March 2024.”

Given the proposed acquisition of CSR by Compagnie de Saint-Gobain by way of scheme of arrangement (Scheme), the CSR Board has not declared a final dividend.

Coates said: “CSR has a wide range of brands serving diverse end markets with a multi-channel distribution platform. We have continued to focus on the delivery of our strategy which has positioned the business well in a dynamic operating environment and is supporting improved responsiveness and performance.”

Picture: CSR Limited