MaxiPARTS (MXI) H2 2024 earnings summary

Executive summary

• FY24 revenue reached a record $243.9m, up 20.9% year-over-year, at the upper end of guidance, driven by strategic acquisitions and organic initiatives.

• EBITDA grew 24.4% to $23.0m, with margin improving to 9.5% from 9.2% in FY23.

• Statutory net profit after tax was $2.8m, down from $6.0m in FY23, impacted by discontinued operations losses.

• Expanded national footprint with acquisitions of Independant Parts and Förch Brisbane, enhancing scale and market reach.

• Integration of acquired businesses completed, with further synergies and benefits expected in FY25.

Financial highlights

• Revenue rose 20.9% year-over-year to $243.9m.

• EBITDA increased 24.4% to $23.0m, with margin up 30 bps to 9.5%.

• Operating cash flow was $10.6m, down from $15.1m in FY23; cash conversion rate dropped to 69% from 91%.

• EPS from continuing operations was 10.73 cps, down from 15.53 cps in FY23.

• Full year dividend of 5.14 cps, fully franked, down from 6.39 cps in FY23.

Outlook and guidance

• Short-term demand remains inconsistent due to economic uncertainty, especially on the east coast, but expected to stabilize medium to long term.

• West coast market remains strong, with further growth anticipated post-acquisitions.

• Focus on revenue and margin improvement from recent acquisitions and organic programs, targeting low double-digit EBITDA margins.

• Förch Australia expected to deliver further revenue and margin growth following recent investments.

• Continued integration of IT, systems, and support functions from recent acquisitions.