Carma (CMA) H2 2023 earnings summary

Executive summary

• Operates as a fully digital used car dealership, focusing on purchase, reconditioning, and online sale of used cars in Australia.

• Reported a net loss after tax of $26.4 million for the year ended 30 June 2023, compared to a $10.4 million loss for the 16-month period ended 30 June 2022.

• No significant changes in the state of affairs or material subsequent events were noted.

Financial highlights

• Revenue for the year was $48.0 million, up from $10.4 million in the prior period.

• Gross profit increased to $1.8 million from $0.5 million year-over-year.

• Operating expenses rose significantly, with employee benefits at $12.4 million and marketing at $5.8 million.

• Cash and cash equivalents decreased to $22.8 million from $63.5 million at the prior year-end.

• Net assets declined to $58.4 million from $84.1 million year-over-year.

Outlook and guidance

• Directors believe the group has adequate cash resources to meet day-to-day working capital requirements and to pay debts as they become due.