Amotiv shares rise as FY earnings meet guidance
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The news: Amotiv shares lifted at market open on the ASX after the car equipment company met its full-year earnings guidance and raised its final dividend.
The numbers: Shares were up 3.3% to $10.51 by 10:30am AEST, having lowered by more than 12% since the turn of the year.
The company reported underlying EBITDA of $194.6 million in FY24, a 5% rise year on year and above guidance of "at least $193.5 million".
Revenue grew 7.7% to $987.2 million, including 5.8% organic growth driven by strategic diversification into new geographies, categories, products and customers, the company said.
Statutory NPAT from continuing operations lifted 6.5% year on year to $99.8 million. This included $22.2 million of amortisation of acquired intangibles, acquisition-related inventory step ups, and $5 million of significant items, on a post-tax basis. Underlying NPATA, which excludes these items, increased 4.5% on the prior year.
Following the divestment of water products company Davey, and the acquisitions of Rindab and Caravan Electrical Solutions, Amotiv said net debt was "significantly reduced" during the year, achieving a net debt-to-adjusted EBITDA ratio of 1.6x, at the bottom end of its target range of 1.6x to 1.9x.
The Melbourne-based company declared a full-year dividend of 40.5 cents per share, up 3.8% from last year.
The context: Amotiv — which manufactures, imports, distributes, and sells automotive products — said it expects "further growth in group revenue and underlying EBITA" in FY25.
It noted that the wear and repair market is expected to stay resilient and new vehicle sales are projected to remain stable, while cost reductions in the company's 4WD accessories and trailering business are underway in New Zealand where the market "continues to show weakness".
The source: ASX announcement
