CAR Group (CAR) H2 2024 earnings summary

Executive summary

• Achieved strong financial, operational, and strategic progress in FY 2024, with double-digit revenue and earnings growth across all key markets and continued global market leadership in digital vehicle marketplaces.

• Full-year consolidation and strong performance of Trader Interactive and Webmotors contributed significantly to revenue and EBITDA increases, enhancing diversification and long-term value.

• Diversified revenue streams and geographic presence enhanced resilience and growth opportunities.

• Continued investment in technology, product innovation, and expansion into adjacent markets such as marine.

Financial highlights

• Proforma revenue reached $1,099m, up 17% in AUD and 15% in constant currency; EBITDA was $581m, up 17% in AUD and 16% in constant currency.

• Adjusted NPAT increased 24% to AUD 344 million; adjusted EPS up 17% to 91.3 cents after capital raises.

• Declared a final dividend of 38.5 cents per share, up 18% and franked at 50%.

• Free cash flow generation remained strong, with leverage reduced to 1.7x EBITDA and 99% EBITDA to cash conversion.

• Reported NPAT was $250m, down 61% due to a one-off $487m gain in FY23 from acquisitions.

Outlook and guidance

• Expects continued growth in revenue, adjusted EBITDA, and adjusted NPAT for FY25 on a constant currency basis, with group EBITDA margin to remain similar due to reinvestment and growth in lower-margin businesses.

• Australian business anticipates growth in dealer, private, and media revenue, supported by dynamic pricing and product innovation.

• North America, Latin America, and Asia all forecast to deliver good to strong revenue and EBITDA growth.

• Early FY 2025 trading has started well, supporting confidence in guidance.