Motorcycle Holdings (MTO) H2 2024 earnings summary

Executive summary

• Sales revenue increased 1% to AUD 582.3 million, with like-for-like revenue down 4% to AUD 450.6 million and operating gross profit at AUD 149.4 million; gross margin was 25.6% for FY24.

• Underlying EBITDA declined 18% to AUD 45.2 million, and NPAT fell 39% to AUD 14.1 million year-over-year.

• New motorcycle retail unit sales rose 5% against an industry decline of 3%, increasing market share to 16%.

• Full-year contribution from the Mojo acquisition and diversification supported revenue stability and market share gains.

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

Financial highlights

• Sales up 1% to AUD 582.3 million; like-for-like sales down 4% to AUD 450.6 million.

• Gross profit down 2% to AUD 149.4 million; underlying EBITDA down 18% to AUD 45.2 million.

• 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.

• Basic EPS for 2024 was AUD 0.192, down 42% from prior year; 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.

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

• Organic growth anticipated, with focus on underperforming dealerships and improved management.

• Expansion in New Zealand and further growth in Mojo and CFMOTO brands expected.

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