ASX 200 drops again, Pushpay rises, CSR climbs

The S&P/ASX 200 Index (ASX:XJO) fell again. However, both Pushpay (ASX:PPH) and CSR (ASX:CSR) rose after reporting.

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The S&P/ASX 200 Index (ASX: XJO) fell by another 0.7% to 7,045 points.

Here are some of the highlights from the ASX today:

CSR Limited (ASX: CSR)

The CSR share price rose by another 4% today after releasing its FY21 full year result.

It said its strong result reflected improved performance in building products and increased property contribution.

Statutory net profit after tax (NPAT) was up 17% to $146.1 million.

The building products division saw earnings before interest and tax (EBIT) grow 8% to $184.3 million. The EBIT margin grew from 10.7% to 12%. CSR reported strong cost control and operational efficiency offset the impact of a slowdown in residential construction activity which declined 4% during the year.

CSR’s property division generated $54.2 million of EBIT following the completion of the next stage of the Horsley Park industrial development.

The aluminium EBIT was $23.4 million, which was consistent with previous guidance, down from $59.6 million. This reflected a large decline in aluminium prices at the start of the financial year due to COVID-19 volatility, which was partly offset by hedging and lower input costs.

CSR declared a final dividend of 14.5 cents, compared to no dividend in the previous year. That brought the full year ordinary dividend to 23 cents, up from 10 cents in the prior year.

It also declared a special dividend of 9.5 cents per share after the settlement of the property sale at Horsley Park.

Pushpay Holdings Ltd (ASX: PPH)

The Pushpay share price went up 3% after reporting its FY21 full year result.

The electronic donation business reported a 40% increase of revenue to US$179.1 million, driven by a 39% increase in total processing volume.

Pushpay’s gross profit margin went up from 65% to 68%, whilst the earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF) margin increased from 22% to 34%. The EBITDAF rose 133% to US$58.9 million.

Operating cashflow jumped 145% to US$57.6 million. Net profit after tax rose by 95% to US$31.2 million.

Pushpay explained that as churches begin to gradually re-open with restrictions, it has become evident across the sector that the market has undergone a transformative shift, where digital solutions play a crucial role in the future of the church.

Carsales.Com Ltd (ASX: CAR)

Carsales has entered into an agreement to buy 49% of Trader Interactive for US$624 million.

The car e-commerce business said that the acquisition represents a strategically compelling opportunity for the business to further build out its international sale and industry diversification with exposure to attractive verticals in the US.

It’s expected to be positive for earnings per share (EPS), with mid-single digit EPS accretion from year one which is expected to grow from there.

Management believe the ASX 200 share is well placed to support Trader Interactive’s growth, leveraging its technology and experience in other international markets.

Carsales has a call option to acquire the remaining interest of Trader Interactive.

The acquisition will be funded by a combination of equity and debt, with a roughly $600 million capital raising.

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Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of PUSHPAY FPO NZX. The Motley Fool Australia has recommended carsales.com Limited and PUSHPAY FPO NZX. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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