Motorcycle Holdings (MTO) H2 2024 earnings summary

Executive summary

• Sales revenue increased 1% year-over-year to AUD 582.3 million, reflecting resilience amid softer consumer demand and economic headwinds.

• Net profit after tax declined 39% to AUD 14.1 million, impacted by higher expenses and financing costs.

• Market share rose to 15.5%, supported by the full-year contribution from the Mojo acquisition.

• The business model proved resilient, outperforming the broader market despite industry-wide declines.

• Diversification from the Mojo acquisition contributed to stable revenue in a contracting market.

Financial highlights

• Gross profit down 2% to AUD 149.3 million; gross margin at 25.6% versus 26.3% last year.

• Underlying EBITDA down 18% to AUD 45.2 million, with margin dropping to 7.8% from 9.6%.

• Net profit after tax down 39% to AUD 14.1 million; net assets up 1% to AUD 200.2 million.

• Final dividend of AUD 0.07 per share, total FY2024 dividend AUD 0.10 per share, fully franked.

• Basic EPS for 2024 was AUD 0.192; dividend yield 15%, P/E ratio 5.2 at June 30.

Outlook and guidance

• Cost of living and interest rate pressures expected to persist, but cost base has been stabilized.

• Organic growth anticipated from system upgrades, New Zealand expansion, and new brands.

• Focus on business improvement, cost control, and EBITDA margin recovery.

• Early FY25 shows improved demand and financial performance.

• FY2025 expected to deliver a better bottom line, assuming stable market conditions.