Amotiv (AOV) H2 2024 earnings summary

Executive summary

• Results for the period were in line with expectations and guidance, driven by diversified earnings, organic growth, and acquisitions across all segments.

• Transitioned to a pure automotive play after the sale of Davey, with strategic inflection and diversification across resilient, largely ICE-agnostic, non-discretionary revenue streams.

• Gross margin expanded to 44.1%, reflecting strong execution and margin management.

• Ongoing debt reduction and strong cash conversion have strengthened the balance sheet.

• Strategic initiatives advanced, including greenfield expansion in South Africa, new product development, and scaling up the Infinitev EV aftermarket business.

Financial highlights

• Revenue increased 7.7% year-over-year to $987.2 million, with 5.8% organic growth.

• Underlying EBITA rose 5.0% to $194.6 million; statutory NPAT increased 6.5% to $99.8 million.

• Underlying NPATA grew 4.5% to $118.9 million; underlying EPSA up 4.5% to 84.4c.

• Cash conversion was 92.9%, down from 112.4% the prior year but ahead of expectations.

• Full-year dividend increased 3.8% to 40.5c per share.

Outlook and guidance

• Further growth in group revenue and underlying EBITA expected in FY25, supported by resilient wear and repair markets and stable new vehicle sales.

• FY25 capex expected to be ~$25 million; cash conversion forecast at ~85%.

• PD spend as a percentage of revenue to rise slightly; focus remains on margin management.

• Ongoing softness in NZ and Caravan/RV markets being monitored.

• No formal guidance provided due to market volatility; trading update to be given at Q4 Investor Day.