Eagers Automotive (APE) H2 2023 earnings summary

Executive summary

• FY23 revenue reached $9.9bn, up 15.3% YoY; underlying operating PBT was $433.3m, up 6.9%, a record result.

• Record new-vehicle deliveries, business transformation and scale supported growth; a material order bank and planned acquisitions underpin FY24 expansion.

Financial highlights

• Revenue from continuing operations was $9,851.7m vs $8,541.5m in FY22; underlying operating EBITDAI was $546.0m vs $471.1m.

• Underlying operating PBT was $433.3m vs $405.2m; statutory PBT was $427.3m vs $442.2m and statutory NPAT was $299.1m vs $324.3m.

• Cash at bank was $222.2m; available liquidity was $620.3m.

• Ordinary final dividend was 50.0 cents per share.

Outlook and guidance

• FY24 revenue growth of more than $1bn is expected, supported by acquisitions, maturing greenfields, strategic partnerships and independent used-car growth.

• Planned Victorian and Alice Springs acquisitions represent $0.9–$1.0bn and $55–60m in annual turnover, respectively.

• The material vehicle order bank, reported at over 6x pre-COVID levels, is expected to provide a hedge into 2024.

• Further return-on-sales opportunities include acquisition integration, maturing greenfields, Finance & Insurance, car care, productivity and property consolidation.