Carma (CMA) H2 2024 earnings summary

Executive summary

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

• Reported a net loss after tax of $33.4 million for the year ended 30 June 2024, compared to a $26.4 million loss in the prior year.

• No significant changes in the state of affairs or environmental regulations during the year.

Financial highlights

• Revenue increased to $68.9 million from $48.0 million year-over-year.

• Gross profit declined to $0.9 million from $1.8 million year-over-year.

• Operating expenses rose, with employee benefits at $15.4 million, marketing at $4.6 million, and depreciation/amortisation at $4.9 million.

• Net cash used in operating activities was $16.6 million, an improvement from $36.4 million used in the prior year.

• Cash and cash equivalents at year-end were $7.9 million, down from $22.8 million.

Outlook and guidance

• Subsequent to year-end, secured a $30 million commitment for convertible notes to support liquidity.

• Directors believe the group can meet its debts as they become due and continue as a going concern.