Autosports Group (ASG) H2 2024 earnings summary

Executive summary

• FY24 delivered record revenue, gross profit, EBITDA, and EBIT, with revenue up 11.6% to $2,647 million and EBITDA up 6.5% to $204.5 million, reflecting the strength of the luxury brand strategy in a competitive market.

• Net profit after tax declined 7.8% to $61.5 million, impacted by a 68.7% rise in interest costs and a non-cash AASB 16 lease impact.

• The Stillwell Motor Group acquisition, a key strategic move, is expected to add 13% to annualised revenue (about $260 million for nine months of FY25) and settle in October 2024.

• Strong operating cash flow of $119.5 million enabled $40.2 million in dividends and $27.5 million in debt repayment.

Financial highlights

• Revenue up 11.6% year-over-year to $2,647 million; all revenue streams grew.

• Gross profit up 8.3% to $515 million; EBITDA up 6.5% to $204.5 million; EBIT up 8.3%.

• Normalized net profit before tax at $93.1 million (pre-AASB 16: $96 million), down 19.6% year-over-year.

• Net profit after tax down 7.8% to $61.5 million.

• Final dividend of $0.08 per share, fully franked; full-year dividend $0.18 per share.

Outlook and guidance

• FY25 outlook remains consistent; new vehicle market expected to stay competitive with ongoing consumer incentives and marketing.

• Stillwell Motor Group acquisition to add about $260 million in revenue for nine months of FY25.

• Used vehicles, servicing, parts, and collision repair divisions expected to continue growth with stable margins.

• Inventory levels targeted to reduce to 70 days by October 2024.

• Continued focus on further luxury-branded acquisitions.