Eagers Automotive (APE) H1 2024 earnings summary

Executive summary

• Achieved record first half revenue of $5.5 billion (AUD 5.5 billion), up 13.4% year-over-year, driven by organic growth, acquisitions, and greenfield expansion.

• Underlying EBITDA rose 4.6% year-over-year to $265.9 million, a record first half result, while underlying operating profit before tax declined to $182.5 million due to higher finance costs.

• Interim dividend maintained at 24.0 cents per share, fully franked, reflecting confidence in business resilience and shareholder returns.

• Strong liquidity position with $444.7 million available and net debt of $495.1 million at 30 June 2024.

• Strategic execution included large-scale acquisitions, property portfolio growth to $726.9 million, and technology-driven productivity gains.

Financial highlights

• Revenue from continuing operations increased 13.4% to $5,464.2 million compared to 1H23.

• Underlying EBITDA margin was 4.9%, above the long-term average of 4.1%.

• Statutory profit before tax was $181.3 million, down 16.1% year-over-year; net profit after tax declined 18% to $123.4 million.

• Basic EPS at 45.4 cents (1H23: 54.4 cents); underlying EPS at 45.9 cents (1H23: 52.2 cents).

• Net tangible asset backing per share decreased to $1.77 from $2.16 at 30 June 2023.

Outlook and guidance

• Expects to deliver over $1 billion in full year revenue growth for 2024, with balanced contributions from acquisitions, organic, and greenfield growth.

• Demand remains strong despite economic and inflationary headwinds; vehicle margins expected to stay above long-term averages.

• Second half expected to remain challenging with cost pressures, excess inventory, and lower consumer confidence, but business is well positioned.

• Focus on integrating acquisitions, expanding retail joint ventures, and executing technology initiatives.

• Continued disciplined review of accretive acquisition opportunities and greenfield expansion.