Eagers Automative shares soar on record revenue
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The news: Eagers Automotive has reported record full-year revenue and outlined a strong growth outlook despite a drop in statutory profit, sending its shares higher.
The numbers: The country’s biggest car dealer group reported statutory profit of $222.9 million for the year to December, down 25% from a year earlier. However, underlying earnings rose 1% to $550.4 million, while revenue was up 14% to a record $11.2 billion. It maintained a fully franked final dividend of 50 cents a share.
Shares in the Eagers jumped 17% to $14.56 in early trading on the ASX.
The context: Eagers CEO Keith Thornton said the company had performed better than the overall market, with statutory results only down because of impairments related to goodwill and leased assets of the New Zealand business and integration costs. Margins remained resilient amid strong new vehicle demand and disciplined inventory management.
The group now expects to increase revenue by $1 billion in 2025, with demand supported by a material order bank and positive industry dynamics. It also said there is an opportunity for profit improvement through deeper integration of recent acquisitions and will continue to assess accretive acquisition opportunities.
The source: ASX
