Join our daily newsletter At The Bell to receive exclusive market insights
Car Group (ASX:CAR) has been trading up 4.7 per cent after awarding a 20 per cent higher dividend with its annual report to shareholders today.
The total annual dividend will reach 73cps, half franked, thanks to double digit revenue and earnings growth.
Shares are at $35.13 (1.10pm AEST).
Car Group has recently expanded into the US and Brazil, and Car Group CEO Cameron McIntyre hinted on further market moves.
“The addressable markets we operate in are large and under penetrated, and we have multiple levers to deliver future growth,” he said.
“With a strong balance sheet and conservative leverage, we are well-positioned to invest in technological innovation and deliver great outcomes for our customers.
“Our momentum gives us confidence in our ability to continue to grow the business over the coming years.
“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.
“Our dynamic pricing engine has successfully increased private ad yields in both the US and Brazil following its implementation in those markets.
“The addressable markets we operate in are large and under penetrated and we have multiple levers to deliver future growth.”
The numbers
Car Group has reported revenue of $1.099 billion, up 41% on the previous corresponding period. It’s Net Profit After Tax (NPAT) of $250m was down from $646m in the previous corresponding period, recognising a $487m gain on acquisition of Trader Interactive and webmotors.
The company said it was on track to see similar adjusted EBITDA margins in FY25 based on its dealer, private and advertising businesses.
Car Group closed yesterday at $33.64.
