CAR Group, the vehicle advertising giant, has reported impressive annual results, with shares rising 3.75%, significantly outperforming the broader market's 0.5% gain.
The company announced a 24% year-on-year increase in adjusted net income, reaching A$344.0 million, closely aligning with analyst expectations of A$344.1 million. This strong performance was accompanied by a 41% increase in revenue from continuing operations, totaling A$1.10 billion, a figure that met market forecasts.
Despite a sharp decline in statutory net income to A$250.0 million, down 61% year-on-year due to the impact of recent acquisitions, CAR Group’s underlying business demonstrated robust growth. Adjusted EBITDA rose 37% to A$581 million, slightly above the estimated A$580.5 million. Reflecting confidence in future earnings, the company declared a final dividend of A$0.385 per share, up from A$0.325 the previous year.
Strategic acquisitions in Brazil and the United States have been pivotal in driving growth, contributing to a 17% increase in proforma revenue and EBITDA on the prior corresponding period (pcp). The company remains optimistic about the potential of these acquisitions, with CEO Cameron McIntyre stating, “We are confident these businesses will continue to drive significant long-term value for shareholders.”
Looking ahead, CAR Group expects to sustain growth in revenue, adjusted EBITDA, and adjusted net profit in FY25, with a focus on maintaining similar adjusted EBITDA margins. The company anticipates solid revenue and EBITDA growth across all regions, with particularly strong performance expected in Latin America and steady growth in Asia and North America.
McIntyre highlighted the importance of CAR Group’s data and technology in driving value for customers, especially as the vehicle transaction process becomes increasingly digital. Despite economic headwinds such as inflation and higher interest rates, the Australian automotive market remains resilient, with new vehicle sales reaching record levels.
CAR Group’s latest results reflect a strong underlying business, bolstered by strategic acquisitions and a focus on technology-driven growth. The company’s outlook for FY25 remains positive, underpinned by its continued expansion in key global markets.
As a reminder, CAR’s inclusion in the ASX Growth Portfolio is based on share price momentum, and will remain within the portfolio as long as it’s share price continues to outperform on a relative basis.
