Eagers Automotive Restricted posts file revenue for FY22

Eagers Automotive Restricted, Australia’s main automotive retail group, introduced on Thursday that it had delivered a statutory revenue earlier than tax for FY22 of AUD 4.422 billion and a file underlying working revenue earlier than tax of AUD 4.092 billion.

The file monetary efficiency was underpinned by sturdy demand for brand new and used automobiles, sustainable sturdy return on gross sales by way of a reset value base and ongoing deal with technology-enabled productiveness enhancements, and the profitable acquisition and integration of multi-franchised dealership teams in ACT and South Australia.

CEO Keith Thornton attributed the file full-year underlying revenue to the energy of ongoing market dynamics mixed with the corporate’s reset and extra productive working platform. He added that the file dividend, which is up 15.3% on the earlier yr, underlined the Board’s confidence in Eagers Automotive’s outlook for 2023 and past.

Eagers Automotive additionally reported that its new automotive order financial institution grew by 74% in 2022, representing an all-time file stage, which can assist future sturdy outcomes. Thornton mentioned that the business is at an inflection level, and Eagers Automotive is in a novel place to steer the generational shift in direction of a decrease emission future.

Throughout the interval, the corporate acquired an additional AUD 148.3 million of property by way of the prudent and disciplined allocation of capital to strategic property property. Its whole property property at December 2022 had been AUD 498 million, up from AUD 483 million at 31 December 2021, excluding property held on the market.

Wanting forward, Thornton mentioned that Eagers Automotive is concentrated on a number of key initiatives to ship earnings development, together with delivering top-line income development related to investments, sustaining its sustainable sturdy return on gross sales, enjoying a number one position within the transition to new vitality and low emission autos, and persevering with to assessment accretive and strategic M&A alternatives.

Eagers Automotive’s shares on the ASX closed 2.2% increased at AUD 17.69 on Thursday after the announcement of its file monetary efficiency for FY22. The corporate additionally introduced its intention to conduct an on-market share buy-back of as much as 10% of issued share capital, reflecting the Board’s prudent deal with lively capital administration and its confidence within the firm’s sturdy steadiness sheet and file accessible liquidity.