The CAR Group Ltd (ASX: CAR) share price is leaping higher today.
Shares in the S&P/ASX 200 Index (ASX: XJO) auto listings company closed on Friday trading for $33.64. In morning trade on Monday, shares are changing hands for $34.92 apiece, up 3.8%.
For some context, the ASX 200 is up 0.6% at this same time.
This outperformance comes following the release of Car Group's results for the financial year ending 30 June (FY 2024).
Here are the highlights.
Car Group share price lifts on revenue surge
- Reported revenue of $1.1 billion, up 41% from FY 2023
- Reported net profit after tax (NPAT) of $250 million, down from $646 million last year
- Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of $581 million, up 37% year on year
- Final dividend of 38.5 cents per share 50% franked, up 18% year on year
What else happened in FY 2024?
The Car Group share price is charging higher after the company reported it delivered double-digit revenue and earnings growth in all of its key markets.
The 61% year on year decrease in NPAT isn't overly concerning to ASX 200 investors, as the FY 2023 profit results included the company's recognition of the $487 million gain on its acquisition of Trader Interactive and webmotors.
Adjusted NPAT for FY 2024 came in at $344 million, up 24% from FY 2023.
Management also pleased passive income investors by upping the final dividend to 38.5 cents per share. That brings the full-year payout to 73.0 cents per share, up 20% from the prior year. This sees the ASX 200 stock trading on a 50% franked dividend yield (part trailing, part pending) of 2.1%.
What did management say?
Commenting on the results sending the Car Group share price leaping higher today, CEO Cameron McIntyre said, "This is a great outcome and reflects the strength of the business model as well as its resilience given a more challenging operating environment in some of our markets."
McIntyre added:
Our recent acquisitions in Brazil and the United States are performing very well, and we are confident these businesses will continue to drive significant long-term value for shareholders.
Our first year as the majority owner of webmotors in Brazil has been outstanding. Aside from delivering exceptional performance outcomes, our partnership with Santander is stronger than ever.
In North America, we delivered excellent results by investing in growing our audience and improving our technology.
On the domestic and Asian front, McIntyre said:
Double-digit revenue and earnings growth in Australia was supported by a robust used car market and strong operational performance. Our South Korean business continues to grow its proportion of premium products and the volume of fully digital transactions.
What's next?
Looking at what could impact the Car Group share price in the year ahead, the company said it expects to deliver "good growth" in revenue, adjusted EBITDA and adjusted NPAT on a constant currency basis.
Management said they expect adjusted EBITDA margins in FY 2025 to be in line with those achieved in FY 2024.
"The addressable markets we operate in are large and under penetrated and we have multiple levers to deliver future growth," McIntyre said.
Car Group share price snapshot
With today's intraday moves factored in, the Car Group share price is up 32% over the past 12 months, not including the dividend payouts.
