MaxiPARTS (MXI) H2 2024 earnings summary

Executive summary

• Revenue grew 20.9% year-over-year to $243.9m, driven by acquisitions and organic growth.

• EBITDA increased 24.4% to $23.0m, with margin improvement to 9.5%.

• Key acquisitions included Independant Parts and Förch Brisbane, expanding scale and product range.

• Market softness on the east coast offset by strong performance in Western Australia.

• Integration of acquisitions and supply chain initiatives contributed to operational efficiencies.

Financial highlights

• Net profit before tax and amortisation (NPBTA) was $10.9m, flat year-over-year due to higher finance and lease costs.

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

• Operating cash flow was $10.6m, down from $15.1m in FY23, with cash conversion at 69%.

• Net debt increased to $15.9m (leverage ratio 0.7x) from $1.0m in FY23, reflecting acquisition funding.

• Fully franked full-year dividend of 5.14 cps, down from 6.39 cps in FY23.

Outlook and guidance

• Short-term demand remains inconsistent, especially on the east coast, but expected to stabilise medium-term.

• WA market remains buoyant, with further growth expected from recent acquisitions.

• Focus on margin improvement and integration of acquisitions to drive EBITDA margins into low double digits.

• Förch Australia expected to maintain higher growth rates and contribute to margin uplift.