Eagers Automotive affirms profit forecast despite first-half headwinds
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The news: Vehicle dealer Eagers Automotive says it is on track to meet its profit forecasts for the 2025 financial year even as half-yearly profit is expected to come in lower year on year.
The context: The company attributed the forecast decline in first-half profit to challenging market conditions, federal election uncertainty, limited interest rate relief, the unfavourable April public holiday schedule, and a cyclone in its biggest market Queensland, according to an address delivered by CEO Keith Thornton ahead of its annual general meeting.
Despite this, Thornton said in the year to date at the end of April, underlying profit before tax was marginally ahead of the same period in 2024, with the trend expected to continue in May.
Although Eagers flagged it will be compared against a very strong June 2024 monthly result, the 2025 year-to-date performance is giving the business confidence in its full-year outlook.
Thornton said the company is on track to achieve its revenue growth target of $1 billion for 2025 and is actively reviewing accretive growth opportunities. He said second-half performance is expected to be buoyed by improving industry conditions and interest rate relief.
Eagers’ Retail Joint Venture and easyauto123 businesses are also trading at record levels amid structural changes. Order write is also materially up on 2024 on a like-for-like basis.
The source: ASX
