AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
The auto listings company, CAR Group (ASX: CAR), recently faced a dip of 0.5% on 12 February 2024, bringing its shares to AU$33.31 in early trade. This shift followed the release of the company's half-year results, signaling potential volatility in the market.
Financial Performance Snapshot
Delving into the financial realm, CAR Group showcased impressive figures in key metrics during the first half. Adjusted revenue experienced a remarkable surge, soaring by 60% to reach AU$531 million. Similarly, adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) saw a robust uptick of 56%, reaching AU$277 million. The adjusted net profit after tax also reflected positive growth, climbing by 34% to AU$163 million.
Half-Year Summary
The stellar performance during the first half becomes more apparent when dissecting the specifics. CAR Group reported a noteworthy 60% jump in revenue, amounting to AU$531 million. This surge was propelled by double-digit revenue growth across all key markets, a testament to the company's strategic execution.
Impact of Transformative Acquisitions
The company's strategic foresight is evident in the transformative acquisitions made in the US and Brazil during the preceding financial year. These acquisitions played a pivotal role in bolstering CAR Group's financial results, contributing to its overall success.
Bottom Line Performance
While the adjusted net profit after tax demonstrated a commendable 34% increase, the reported net profit experienced a 72% decline to AU$117 million. It's crucial to note that this dip is attributed to the recognition of a AU$333 million gain on the acquisition of Trader Interactive in the previous year.
Management Commentary
CAR Group's CEO, Cameron McIntyre, expressed satisfaction with the first half's performance. Highlighting the completion of acquisitions and the accelerated growth strategy, McIntyre particularly lauded the exceptional revenue and earnings growth in the Brazilian business, webmotors, during the first six months of majority ownership.
Outlook for the Full Year
While the management refrains from offering firm guidance for the full year, their expectations paint a positive picture. On a pro forma basis, they anticipate good growth in revenue and EBITDA in FY24. On an actual basis, very strong growth in revenue and adjusted EBITDA, coupled with robust growth in adjusted NPAT, is expected. The positive projection also includes an anticipation of seeing an expansion in the CAR Group EBITDA margin on a proforma basis in FY24.
Conclusion
In conclusion, CAR Group's journey through the first half showcases a mix of challenges, triumphs, and strategic foresight. The company's resilience in a complex macroeconomic environment, coupled with its commitment to key strategic priorities, positions it for sustained growth. While the reported net profit reflects a decline due to a one-off gain recognition, the overall trajectory remains optimistic, aligning with market expectations.
