Car Group optimistic about dealer future
DOUBLE digit financial results from Car Group (formerly Carsales) for the last six months of 2023 shows the company is on a strong growth path and that for 2024, it also sees greater returns in dealer revenue on higher lead volumes and increased penetration of premium products.
For its half year ending December 1, 2023, Car Group reported:
- Revenue up 18 per cent to $531 million
- EBITDA up 63 per cent on the previous corresponding period to $269m
- A 52 per cent EBITDA margin
- A fall in net profit to $117m (from $416m previously) on the $333m acquisition of US-based Trader Interactive
Car Group declared a 50 per cent franked interim dividend of 34.5 cents per share, up 21 per cent on the previous corresponding period.
Cameron McIntyre CEO Car Group
Car Group said that acquisitions completed in FY23 in the US and Brazil, coupled with good performance in Australia and Korea “helped to deliver outstanding financial results and strong returns for shareholders”.
“The result was delivered against a more complex macroeconomic environment, demonstrating the strength and resilience of the group’s diversified business model and the value it provides to its customers.
“The result highlights the significant long term growth opportunity in the group’s large and under penetrated markets,” the company said.
Car Group CEO Cameron McIntyre termed it “an excellent first half of the financial year” that saw the completion of the acquisitions of Trader Interactive (US) and webmotors (Brazil).
“We have accelerated our growth strategy and are executing on key strategic priorities across the group,” he said.
“Our Brazilian business, webmotors delivered exceptional revenue and earnings growth in the first full six months of majority ownership.
“Our teams across the world are delivering on our purpose to make buying and selling vehicles a great experience, and I am incredibly proud of all of their achievements in delivering great outcomes for our customers and our shareholders.
“Our financial results reflect the significant progress that has been made in delivering on our key strategic priorities and the resilience of our business through economic cycles.”
He said Car Group had maintained significant market leadership across the group.
“As the vehicle transaction process continues to become more digital, it provides us with great potential to deliver improved outcomes for our customers,” he said.
“In media, we are successfully leveraging new technology and IP across the group, which has resulted in an uplift in advertising viewability, yield and consumer experience.
“Our dynamic pricing engine has delivered higher private ad yields in both the US and Brazil following successful implementation in these markets.
“The addressable markets we operate in are large and under penetrated. We are positive about the multiple levers that Car Group has to deliver future growth.”
For the future, Mr McIntyre said “the excellent momentum we have built heading into the second half provides confidence in our ability to deliver another year of great results for our shareholders.
“The Australian automotive market continues to be resilient despite cost of living and higher interest rate pressures, with inquiry volumes to carsales.com.au in December all tracking above the same time last year.
“Car market conditions are positive for consumers looking for a car, with improved new car availability as well as a moderation in used vehicle pricing from COVID highs giving consumers more choice when it comes to their next vehicle purchase.”