CAR Group, the Australian vehicle classifieds advertiser, has announced impressive financial results for the first half of the fiscal year. The company reported a 34% increase in adjusted net profit, reaching AUD 162.7 million. Adjusted revenue also saw significant growth, rising by 60% to AUD 530.7 million.
While the statutory net profit fell 72% to AUD 117.0 million, it can be attributed to a one-off gain related to the acquisition of U.S. RV marketplace Trader Interactive. Statutory revenue, on the other hand, increased by 60% to AUD 531.0 million.
The reported figures exceeded the average analyst forecast, which predicted a profit of AUD 121.8 million.
To reward its shareholders, CAR Group has decided to raise its interim dividend to 34.5 Australian cents per share, compared to 28.5 Australian cents the previous year.
Looking ahead, CAR Group remains optimistic about the future. The company confidently expects robust growth in revenue and adjusted earnings throughout fiscal year 2024. Additionally, it anticipates a strong increase in adjusted net profit.
CAR Group’s success can be attributed to several factors. It experienced double-digit revenue growth in its private, dealer, and media segments within Australia. This can be attributed to its strong inventory position, increased depth penetration, and growing demand for its instant-offer facility.
Overall, CAR Group’s positive performance in the first half of the fiscal year sets a promising stage for future growth and profitability.
Digital Transformation Driving Success for CAR Group
Chief Executive Cameron McIntyre expressed confidence in the digital transformation of the vehicle transaction process, highlighting the potential for improved outcomes for customers. The growing trend towards digitization has allowed CAR Group to thrive in its various markets.
Strong Performance in North America and Brazil
CAR Group recorded an impressive 15% increase in revenue and an 18% rise in earnings in North America. In Brazil, the company took a step forward by increasing its stake in the Webmotors vehicle marketplace from 30% to 70% in May 2023. This strategic move paid off, with revenue and earnings in Brazil growing by 26% and 29%, respectively.
Steady Growth in Asia
Continuing its global success, CAR Group saw a 13% rise in revenue and an 11% increase in earnings in Asia. This growth reflects the continued preference of customers for CAR Group’s premium advertising products, even amidst a challenging macro environment.
Positive Market Performance
Investors have responded positively to CAR Group’s strong performance, resulting in a 51% rise in company shares in 2023. As of 2024, shares have already increased by 7.5%. Analysts remain optimistic about the stock, with the majority maintaining a bullish outlook. However, some caution that the valuation may be reaching its limit.
CAR Group’s commitment to delivering exceptional customer experiences and its ability to adapt to a digital world have positioned the company for continued success.