1/ The volume (- 2 %) look quite decent to me, given the decrease for the volume of residential construction in Australia,
2/ The stabilisation of EBITDA looks even more surprising, given that they faced a decrease of their prices (return of imports) and an increase of their costs (inflation impact). Good result thanks to positive price/mix effect (I guess it must be mainly mix) and significant non recurring element (details ?). Curious to see that raw materials and consumable used decreased by 10 %, more than revenues (- 6 %).
3/ This time, Capral has been able to generate a significant cash flow from operation (unlike H1 22), only due to a much better control of its working capital (easier with sales decrease, also due to a decrease of its inventory due to the price trend). The level of free cash flow is significant at 24.5 m$ just for H1 23, for a market cap of 148 m$ and an EV of 107m$.
This level of results and free cash flow look interesting for a company, which is far from being at the top of the cycle now, given the level of residential construction. A lot to like with this company given its good resilience and an interesting way to manage its cash position (not repeating past mistake of increasing supply).
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