Combined Motor (CMH) H1 2025 earnings summary

Executive summary

• Earnings and headline earnings per share declined 32% year-over-year, mainly due to weak consumer confidence during the election period and high interest rates.

• Revenue decreased by 1.3% year-over-year, with gross profit down 2.8% and expenses up 4.9%.

• A dividend of 102 cents per share was declared, reflecting a reduction in line with lower earnings.

Financial highlights

• Revenue for the six months ended 31 August 2024 was R6.53 billion, down from R6.62 billion in the prior year.

• Operating profit fell 22% to R283.9 million year-over-year.

• Total profit and comprehensive income dropped 32% to R134.2 million.

• Earnings per share and headline earnings per share both declined 32% to 179.4 cents and 179.3 cents, respectively.

• Dividend per share for the period is 102 cents, down from 146 cents.

Outlook and guidance

• Modest improvement expected in the next period, supported by anticipated interest rate cuts and improved consumer confidence.

• Launch of the Foton range of light commercial vehicles is expected to contribute positively.