Eagers Automotive (APE) H1 2024 earnings summary

Executive summary

• Achieved record first half revenue of AUD 5.5 billion (or $5,464.2 million), up 13.4% year-over-year, driven by organic growth, acquisitions, and greenfield expansion.

• Underlying EBITDA rose 4.6% to AUD 265.9 million, while underlying profit before tax declined 12% to AUD 182.5 million due to higher finance costs.

• Net profit after tax declined 18% to $123.4 million, reflecting higher finance costs and acquisition integration.

• Interim dividend of AUD 0.24 per share (24.0 cents), fully franked, was maintained, reflecting confidence in business resilience and shareholder returns.

• Strategic execution included large-scale acquisitions, property portfolio growth to over AUD 725 million, and technology-driven productivity gains.

Financial highlights

• Revenue from continuing operations increased to AUD 5.5 billion ($5,464.2 million), up 13.4% year-over-year.

• Underlying EBITDA margin was 4.9%, above the long-term average of 4.1%, but down from 5.3% in 2023.

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

• Return on sales (underlying) was 3.3%; core franchise automotive business delivered 4.1% return on sales.

• Available liquidity at period end was $444.7 million, with net debt of $495.1 million.

Outlook and guidance

• Second half expected to remain challenging with excess inventory and downward pressure on new car margins, but business is well positioned with a robust order bank and productivity improvements.

• Continued strong new car deliveries anticipated, with benefits from used car growth, service, and parts.

• Retail joint venture and EasyAuto123 expected to perform strongly in the second half, supported by BEV/PHEV demand and inventory normalisation.

• Ongoing integration of acquisitions and greenfield sites, with further M&A and partnership opportunities identified.

• On track to deliver over $1 billion in full year revenue growth for 2024.