Eagers Automotive: Structural growth under the bonnet
About the author:
- Author name:
- By Scott Murdoch
- Job title:
- Senior Analyst
- Date posted:
- 25 August 2023, 9:30 AM
- Sectors Covered:
- Diversified Financials, Professional Services
- Eagers Automotive (ASX:APE) delivered 1H23 (vs pcp): revenue +14% to A$4.8bn; underlying NPBT +6.3% to A$207.4m; DPS +9% to 24cps. The result was in-line with expectations.
- Whilst group ROS fell 30bps (diluted by acquisitions); focused cost management was a highlight. Like for like costs were +4.9% against the high inflationary period.
- APE expects to deliver FY23 revenue of A$9.5-10bn, with a stronger 2H23 margin outcome. Plenty of med-term structural growth initiatives are in play across: consolidation; strategic industry alliances; leading the EV transition; sales channel optimisation; used vehicles; and new markets (offshore).
- There will be periods of cyclicality experienced through time, however APE is executing on building a sustainably higher earnings base. Add maintained.
Find out more
Download full research note
You can find further detailed analysis of company results this reporting season by browsing our reporting season tag, and view a full list of upcoming results on our Reporting Season Calendar.
If you would like more information, please contact your adviser or nearest Morgans office.
Request a call
Find local branch
Disclaimer: The information contained in this report is provided to you by Morgans Financial Limited as general advice only, and is made without consideration of an individual's relevant personal circumstances. Morgans Financial Limited ABN 49 010 669 726, its related bodies corporate, directors and officers, employees, authorised representatives and agents (“Morgans”) do not accept any liability for any loss or damage arising from or in connection with any action taken or not taken on the basis of information contained in this report, or for any errors or omissions contained within. It is recommended that any persons who wish to act upon this report consult with their Morgans investment adviser before doing so.
Print this page