AUS
NZ
UK
CA
USA
IND
CAR Group Ltd (ASX:CAR), the operator of Carsales.com and marketplaces in South Korea, the US, Chile, and Brazil, has reported an impressive FY24 result, sending its share price up more than 3%.
FY24 Highlights
For the 12 months ending 30 June 2024, CAR Group achieved notable financial growth:
- Revenue increased by 41% to $1.1 billion.
- Underlying EBITDA rose 37% to $581 million.
- Underlying net profit after tax (NPAT) grew 24% to $344 million.
- Statutory net profit saw a decline of 61%, totaling $250 million.
- The final dividend per share was boosted by 18% to $0.385.
Key Performance Drivers
In Australia, CAR Group enjoyed double-digit revenue and earnings growth, driven by a robust used car market and strong operational performance. Australian dealer revenue climbed 12%, while private ad market revenue increased by 10%.
The South Korean segment continued its strong performance, with a 17% rise in revenue and a 13% increase in adjusted EBITDA. The business is noted for its growing proportion of premium products and fully digital transactions.
CAR Group’s acquisitions in Brazil and the US have also been successful. In North America, proforma revenue rose 17%, with proforma EBITDA increasing by 18%. Latin American proforma revenue grew by 31%, and proforma EBITDA saw a notable 39% increase. The company described its first year as a majority owner of Webmotors in Brazil as outstanding, bolstered by a strong partnership with Santander.
Management Insights
CEO Cameron McIntyre highlighted the company's strong market leadership and the value derived from its data and technology. As the vehicle transaction process becomes increasingly digital, CAR Group sees significant potential for further growth.
McIntyre emphasized the company's advancements in media technology, which have improved advertising viewability, yield, and consumer experience. The dynamic pricing engine implemented in the US and Brazil has successfully increased private ad yields.
With a solid balance sheet and conservative leverage, CAR Group is well-positioned to invest in technological innovation and drive future growth. The company remains optimistic about its prospects, with plans to continue expanding its market presence.
Outlook for CAR Group
Looking ahead to FY25, CAR Group expects to deliver strong growth in revenue, adjusted EBITDA, and adjusted NPAT on a constant currency basis. The company anticipates solid revenue growth across all segments and continued robust EBITDA growth internationally.
Over the past year, CAR Group’s share price has surged by more than 30%. While the current valuation might not offer the best entry point, CAR Group’s solid performance and growth prospects make it a noteworthy company to watch in the ASX 200 index.
