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Highlights:
The Australian benchmark index S&P/ASX200 ended Monday, 8 May 2023, increasing by 0.78% to 7,276.50 points. However, on the same day, Vmoto Limited (ASX:VMT) and GUD Holdings Limited (ASX:GUD) underperformed the index and fell by 14.705% and 0.526%, respectively.
Let’s now look into the reasons behind the decline of 2 ASX consumer stocks- VMT and GUD from the automobile space.
Vmoto Limited (ASX: VMT)
The manufacturer and distributor of electric motorcycles settled Monday’s trading session, decreasing by 14.705% to AU$0.290 after it reported its activities for the quarter ended 31 March this year.
In the 1Q 2023, the company sold a total of 7,391 units, with nearly 80% of these units being sold into global markets, reflecting a decline of 8% from pcp. Whereas international unit sales of 5,924 units were down 23% on pcp because of the rising volatile macro-economic environment (especially in Europe) consisting of elevated interest rates and superior cost of living pressures.
As of 31 March 2023, VMT had firm international orders for 5,019 units, which are anticipated to be provided in 2Q 2023. In the reported quarter, VMT inked a deal with UK distributor to acquire the business and certain assets of it for a total cash consideration of AU$1 million.
VMT has also inked a strategic agreement to acquire industrial land in the China-based Lishui Economic Development Zone, which will enable the company’s capacity to increase its manufacturing facilities.
As of 31 March, this year, VMT’s closing cash position was AU$29 million.
G.U.D Holdings Limited (ASX: GUD)
The owner of a portfolio of companies in the automotive aftermarket and water products sectors ended Monday, plummeting by 0.526% to AU$9.440 despite no price-sensitive news today.
In its 1H FY23 results ended 31 December last year, GUD’s revenue rose by 55.7% to AU$517 million from AU$185 million in pcp steered by acquisitions. Statutory NPAT grew 88.7% to AU$45.6 million on pcp. The underlying EBITA for the reported period was elevated by 52.4% to AU$90.3 million, propelled by robust core automotive results combined with full 6-month contributions from APG and Vision X.
In July last year, GUD’s subsidiary company Vision X Offroad LLC purchased the assets, liabilities, and associated business processes of Twisted Throttle LLC valued at AU$1.601. Twisted Throttle contributed revenue of AU$5.965 million in the 1H FY23 period.
For the interim period, GUD’s board announced a 100% franked distribution of 17 cps, which was paid on 10 March this year.
