Eagers Automotive (APE) H2 2024 earnings summary

Executive summary

• Achieved record FY24 revenue of AUD 11.2 billion, up 13.6% year-over-year, with underlying operating profit of AUD 371.2 million and underlying EBITDAI of AUD 550.4 million, driven by core business, acquisitions, and retail joint ventures.

• Statutory PBT was AUD 335.6 million, impacted by a AUD 21.2 million NZ impairment and AUD 9.4 million in acquisition costs; statutory NPAT was AUD 222.9 million.

• Declared a final fully franked dividend of AUD 0.50 per share, maintaining a record full-year dividend of AUD 0.74.

• Market share increased to 11.5%, with over 147,000 new vehicles delivered and an order bank five times pre-COVID levels.

• Execution of strategic initiatives drove business model optimisation, margin resilience, and productivity gains.

Financial highlights

• Revenue rose 13.6% to AUD 11.2 billion, with underlying EBITDAI at AUD 550.4 million and statutory EBITDA at AUD 684.7 million.

• Statutory profit after tax was AUD 222.9 million, down 25.5% year-over-year due to specific items.

• Underlying net profit margin was 3.3%, with EBITDAI margin before impairment at 4.9%.

• Inventory increased to AUD 1.87 billion, with days supply reduced to 54.

• Operating cash flows were AUD 338.9 million, and available liquidity stood at AUD 773.9 million.

Outlook and guidance

• Forecasts another AUD 1 billion revenue growth in 2025, targeting AUD 12.2 billion turnover, with sustained net margins and further profit improvement from acquisitions and retail JV.

• Order bank remains at five times pre-COVID levels, supporting deliveries into 4Q25.

• Macro tailwinds, including RBA rate cuts, are expected to support positive outcomes in the second half of 2025.

• Incremental margin improvements of more than 1.9% identified for future delivery.

• Cautious of economic and inflationary headwinds but expects strong demand and stable vehicle margins.