ARB (ARB) H2 2024 earnings summary

Executive summary

• FY 2024 sales revenue rose 3.3% to AUD 693.2 million, with profit after tax up 16.1% to AUD 102.7 million and EPS up 15.7% to AUD 1.249.

• Growth was driven by Australian Aftermarket and OEM channels, while export sales declined due to challenging international conditions.

• Improved gross margins and operational efficiencies contributed to profit growth outpacing revenue.

• Fully franked dividends for FY 2024 totaled AUD 0.69 per share, up 11.3%.

• Cash at year-end was AUD 56.5 million, with no debt.

Financial highlights

• Underlying profit before tax (excluding non-operating items) was AUD 142.7 million, up 17.1%.

• Gross margin improved as materials and consumables fell to 43% of sales from 47% last year.

• Cash flows from operations were AUD 125.3 million, up 39%.

• Depreciation expense increased 9.9%, reflecting higher capital expenditure.

• Basic EPS (excluding adjustments) increased 17.7% to 126.66 cents.

Outlook and guidance

• Aftermarket and export order books remain strong; Q1 FY 2025 sales have started positively.

• FY 2025 expected to return to growth, with continued expansion in US, OEM, and e-commerce channels.

• OEM sales forecast to grow, supported by new contracts, including with Toyota North America.

• Four new stores and five store upgrades planned for FY 2025.

• Strategic acquisitions in product and distribution are under consideration, both domestically and internationally.