Building materials supplier CSR lifted full-year profit by 17 per cent, and the good times may continue as Australians take advantage of the federal government’s HomeBuilder stimulus.
CSR on Wednesday reported a net profit of $146.1 million for the 12 months to March 31.
Cutting costs in the biggest division, building products, helped as home building slowed amid the pandemic.
Sales fell four per cent to $2.1 billion. Lower aluminium prices contributed.
Chief executive Julie Coates said a strong focus on cost control helped increase earnings.
However, new buildings coming online due to the federal government’s HomeBuilder scheme could prove a sales boon.
The scheme was designed to help the housing market and protect jobs.
In April, the government allowed people who registered for the scheme another 12 months to start building.
There were about 121,000 eligible HomeBuilder applications.
CSR said its pipeline of detached housing projects would extend into the 2022 calendar year as a result.
The forecast for commercial projects this financial year was not as strong.
Building approvals for these projects had been down nine per cent for the 12 months to March 31 due to COVID-19 uncertainty.
Shareholders will reap a final dividend of 14.5 cents per share, fully franked. There was no final dividend last year due to COVID-19.
Shareholders will also receive a fully franked special dividend of 9.5 cents per share. This will come from the sale of an industrial property at Horsley Park, NSW.
CSR shares rose as high as $6.48.
They were higher by 7.45 per cent to $6.35 at 1403 AEST.