Guess which ASX 200 share is soaring 9% after declaring a record dividend

Eagers Automotive has impressed the market today.

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Key points

  • The Eagers Automotive share price is soaring today after the company released its full-year results for 2022
  • Australia's biggest car sales group announced a final dividend of 49 cents per share for FY22, creating a record total full-year dividend of 71 cents per share for investors 
  • Eagers achieved record underlying operating profit before tax of $405.2 million 

ASX 200 share Eagers Automotive Ltd (ASX: APE) is rocketing today after the company released its full-year results for 2022.

The Eagers share price is up by 9.3% to $13.04 at the time of writing. It hit an intraday high of $13.44 in earlier trading, which was 12.65% above yesterday's closing price of $11.93.

Australia's biggest car sales group announced a record full-year dividend of 71 cents per share for FY22. This is up 13.6% compared to FY21. The final dividend payment for FY22 will be 49 cents per share.

Let's see what else the company reported today.

ASX 200 share rips it up on record operating profit

Here are the highlights of the 12 months ended 31 December 2022 (FY22):

  • Record underlying operating profit before tax of $405.2 million, up from $401.8 million in the prior corresponding period of FY21 (pcp)
  • Statutory profit before tax of $442.2 million, down from $456.8 million pcp
  • Available liquidity of $631.1 million
  • Fully franked final dividend of 49 cents per share, up 15.3% pcp.

What else happened in FY22?

Eagers Automotive said its record profit came down to continuing strong demand for both new and used cars, as well as a "sustainable strong return on sales through a reset cost base and ongoing focus on technology enabled productivity improvements …".

It also noted the successful acquisition and integration of the ACT and South Australia multi-franchised dealership groups and continued investment in strategic partnerships.

The FY22 statutory result included significant items of $37 million net income before tax. This is predominately related to the capital gain made on the sale of the Bill Buckle Auto Group.

What did management say?

Eagers Automotive CEO Keith Thornton said:

Our record full year underlying profit reflects the strength of ongoing market dynamics combined with our reset and more productive operating platform, while our record dividend underlines the confidence the Board has in our outlook for 2023 and beyond.

Our new car order bank grew by 74% in 2022, representing an all-time record level with an extended run-off period and providing material embedded gross profit that will support future trading results.

What's next?

Thornton said the industry "is at an inflection point" as the world begins to decarbonise.

He said:

… Eagers Automotive is uniquely positioned to capitalise on its scale and expertise while leading the generational shift towards a lower emission future.

Eagers Automotive share price snapshot

The ASX 200 share is up 21% in the year to date and down 7% over the past 12 months.

This compares to a 4.9% year-to-date bump in the S&P/ASX 200 Index (ASX: XJO) and a 1.1% rise over the past year.

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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