ARB Corporation books FY profit growth, hikes dividend
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The news: ARB Corporation shares gained after the car accessories supplier hiked its full-year dividend following an 18% growth in profit in the 2024 financial year.
The numbers: ARB shares jumped 6.4% to $42.80 by 12:15pm AEST.
The company posted a full-year profit after tax of $104.1 million, up 18.1% year on year. Profit before tax — which excludes a one-off capital expense of $2.5 million relating to the final deferred payment for the acquisition of the Truckman business, and a one-off capital gain of $1.2 million relating the sale of a factoring in Thailand — was up 17.1% to $142.7 million.
Sales edged higher, with revenue up 3.3% to $693.2 million. Sales growth of 6.4% in the second half was offset by sales growth of 0.2% in the first half, which saw disruptions caused by industrial disputes across Australian ports.
ARB will pay an final dividend of 35 cents a share, and a total dividend of 69 cents a share, up 11.3% compared to last year.
The context: ARB said its distribution network across the wider Australian aftermarket is a key competitive strength, incorporating sales through its company-owned and licensed ARB branded store network, and sales to ARB stockists, new vehicle dealers and fleet operators.
The company said its outlook remains positive, with ongoing healthy demand for its products, a consistently strong order book, retail store development and expansion, stabilised new vehicle supply around the world, and healthy gross profits despite high inflation.
The source: ASX announcement
