HomeBuilder boosts CSR profit by 17%

13/05/2021

Building products supplier CSR has lifted its full-year profit by 17 per cent, and the good times are expected to continue as Australians capitalise on the Federal Government’s HomeBuilder stimulus, according to a recent report by The West Australian.

On Wednesday CSR reported a net profit of $146.1 million for the twelve months to March 31.

Reducing costs in the largest division – building products – also assisted the company as home building reduced due to the pandemic. Sales dropped four per cent to $2.1 billion, while lower aluminium prices also contributed.

CSR Chief Executive, Julie Coates stated that a strong focus on cost control helped raise earnings. However, brand-new buildings coming online because of the Federal government’s HomeBuilder scheme could now see a sales boom, with the scheme specifically designed to help the real estate market and also safeguard jobs.

In April the Federal Government permitted 121,000 eligible home builders, who signed up for the scheme, an additional 12 months to commence building.

As a result, CSR claimed its pipe of detached housing projects would extend into the 2022 fiscal year, even though the projection for commercial projects this financial year was not as strong.

Due to COVID uncertainty, building approvals for these tasks were also down nine per cent for the 12 months to March 31. Shareholders will gain a final dividend of 14.5 cents per share, fully franked, however there were no final dividends in 2020 due to COVID.

Shareholders will also receive a fully franked special dividend of 9.5 cents per share which will come from the sale of an industrial property at Horsley Park in New South Wales. CSR shares increased as much as $6.48. They were higher by 7.45 per cent to $6.35 at 1403 AEST.