Car Group shares climb as full-year result meets forecasts
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More news: Shares in Car Group gained on the ASX after reporting full-year results in line with analysts' forecasts.
Car Group shares were up 3.9% to $34.94 by 12:55pm AEST.
Jarden analysts said that Car Group's FY25 guidance implies "little change" to consensus EBITDA. The "key surprise" in the earnings release, they noted, is expectations of a flat margin in FY25, compared to consensus forecasts for margin expansion. However, this is offset with likely higher revenue expectations relative to consensus, the analysts said.
Car Group posts double-digit revenue growth, hikes dividend
The news: Carsales owner Car Group tracked estimates after delivering double-digit revenue and earnings growth across its key markets during the 2024 financial year, despite a "challenging operating environment".
The numbers: The vehicle marketplace business reported full-year revenue of $1.1 billion, up 41% year on year.
It recorded a net profit of $250 million, down from $646 million in the prior year. However, adjusted net profit, which removes the one-off $487 million gain from Car Group's acquisitions of Trader Interactive and Webmotors in FY23, was up 24% year on year at $344 million. This was in line with Visible Alpha estimates.
The company declared a 50% franked final dividend of 38.5 cents per share, up 18% year on year, beating analysts' estimates of 37.88 cents per share. It brought total dividends for FY24 to 73 cents per share, up 20% on the prior year.
The context: Car Group said its full-year performance was boosted by a "robust used car market and strong operational performance" in Australia.
The Melbourne-based company, which owns vehicle trading websites in Australia, South Korea, Mexico and Chile, acquired US-based Trader Interactive and Brazil's Webmotors in 2022.
Car Group CEO Cameron McIntyre noted the recent acquisitions "are performing very well" and will "continue to drive significant long-term value for shareholders".
What they said: "We have achieved excellent financial results in FY24 with double-digit revenue and earnings growth in all of our key geographies," McIntyre said.
"This is a great outcome and reflects the strength of the business model as well as its resilience given a more challenging operating environment in some of our markets."
The source: ASX announcement
