CSR (ASX:CSR) share price lifts to all-time high on full-year results

The CSR Limited (ASX: CSR) share price is rocketing higher today following the release of the company’s full year results. We take a look.

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The CSR Limited (ASX: CSR) share price has pushed 6.26% higher to $6.28 following the release of the company’s full-year results. In earlier trade, CSR shares gained more than 8% to reach a new, all-time high before partially retreating.

Let’s take a look at how the company has been performing.

CSR full year results highlights 

The CSR share price is higher following a well rounded result with a 17% increase in statutory net profit after tax (NPAT) to $146.1 million. 

This result was driven by strong cost control and operational efficiency out of the company’s building products division, which accounted for 70% of group earnings before interest and taxes (EBIT). Building products experienced an 8% uplift in EBIT to $184.3 million with EBIT margins increasing from 10.7% to 12.0%. 

The improvement in margins helped the business offset the impact of slowdown in residential construction activity, which declined 4% during the year.

Elsewhere, CSR’s property division delivered an EBIT of $54.2 million following the completion of the next stage at the Horsley Park industrial development. The company further secured $146 million in sale proceeds over the next three years for Horsley Park developments. 

Finally, the company’s aluminium division saw EBIT slide from $59.6 million to $23.4 million, or roughly 9% of group EBIT following a sharp decline in aluminium prices at the start of the financial year. 

CSR declared a final dividend of 14.5 cents per share, lifting its full year dividend to 23.0 cents per share. The company also announced a special dividend of 9.5 cents per share following the settlement of the property sale at Horsley Park. This compares to the previous year where no final dividend was declared due to the priorities placed on preserving cash amidst COVID-19

Management commentary 

CSR managing director and CEO Julie Coates commented on the result, saying: 

CSR performed very well during the year, reflecting the breadth of our businesses and strength of our offering across diverse construction segments and markets. We increased our earnings with a strong focus on cost control and operational efficiency which leveraged trading outcomes as residential building activity improved during the second half of the year

The pleasing result was achieved while making important changes to reorganise the Building Products business. We are now well positioned to deliver our strategy across more complete customer solutions, optimising our supply chain and leveraging core capabilities across all products and markets. This will further diversify our business, enabling us to maximise market opportunities and drive future growth

CSR share price cruises to record highs 

The CSR share price has been performing well and is up by more than 50% since September last year. The bullishness behind the building industry has helped the company’s shares clear previous 2018 highs to set a new all-time record high of $6.40 in intraday trading today. 

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Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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