Amotiv Ltd (ASX: AOV) shares are having a good session on Wednesday.
In afternoon trade, the ASX 300 stock is up 6% to $10.77.
This follows the release of the auto parts products company's results for FY 2024.
Image source: Getty Images
ASX 300 stock jumps on solid FY 2024 results
- Revenue up 7.7% to $987.2 million
- Underlying EBITA up 5% to $194.6 million
- Underlying net profit after tax before amortisation (NPATA) up 4.5% to $118.9 million
- Full year dividend up 3.8% to 40.5 cents per share
What happened during the year?
For the 12 months ended 30 June, the company formerly known as GUD Holdings reported a 7.7% increase in revenue to $987.2 million. This includes 5.8% organic growth driven by ongoing strategic diversification into new geographies, categories, products and customers.
For the ASX 300 stock's 4WD Accessories and Trailering business, it reported revenue and underlying EBITA growth of 4.7% and 7.7%, respectively. This reflects improved vehicle supply offsetting a less favourable model mix and challenges in New Zealand.
The Lighting, Power and Electrical business reported organic revenue growth of 7.3%. And combined with acquisitions, it delivered growth of 13.3%. Underlying EBITA lifted 10% year on year. Management notes that its lower EBITA margin reflects the impact of FY 2024 acquisitions.
Finally, the Powertrain and Undercar segment posted revenue growth of 5.7% and underlying EBITA growth of 2%. This was driven by a combination of above system volume growth and pricing actions.
This allowed the company's board to declare a fully franked final dividend of 22 cents per share, which was in line with the prior year. Its full year dividend increased 3.8% to 40.5 cents per share.
Outlook
The ASX 300 stock has started FY 2025 in a positive fashion. Management revealed that it achieved solid revenue growth across the 4WD Accessories and Trailering and Powertrain and Undercar segments.
The Lighting, Power and Electrical segment has had a mixed start. Solid revenue growth for truck and power management in Australia has mitigated lower orders from a major reseller and softer caravan/RV market. Solid growth was achieved in non-ANZ revenue.
The sum of the above is management guiding to "further growth in Group revenue and underlying EBITA" in FY 2025.
This is based on the following assumptions:
- Wear and repair market expected to stay resilient.
- New Vehicle Sales projected to remain stable.
- NZ continues to show weakness, 4WDAT manufacturing cost reductions underway.
- Closely monitoring indicators of ongoing softness in the Caravan/RV market and broader economic conditions.
This ASX 300 stock remains down over 10% in 2024 despite today's gains.
