CAR Group Limited (ASX: CAR) has delivered a stellar first-half performance for FY25, reporting strong revenue and earnings growth across all key markets. The company’s diversified global footprint and strategic investments continue to drive robust financial results, reinforcing its position as a market leader in automotive marketplaces.
Financial Highlights
- Proforma Revenue: $548 million, up 12% on the prior corresponding period (pcp).
- Proforma EBITDA: $302 million, also up 12%, maintaining a 55% EBITDA margin.
- Reported Revenue: $579 million, an increase of 9%.
- Reported EBITDA: $292 million, up 9%.
- Reported NPAT: $123 million, up 5%.
- Strong Cash Flow Conversion: 95% EBITDA-to-operating cash flow conversion.
- Dividend: 50% franked interim dividend of 38.5 cents per share, up 12% on pcp.
Operational Strength Across Markets
CAR Group’s success is underpinned by consistent execution across its global businesses. Key operational highlights include:
- Brazil (webmotors): Exceptional growth driven by market leadership, regional expansion, and increased finance revenue.
- Australia: Continued market dominance with strong growth in dealer leads, private listings, and media revenue.
- North America: Resilient performance amid a challenging recreational vehicle market, with strong contributions from media and premium product sales.
- Asia (Korea): Strong growth, particularly in premium product penetration and home delivery transactions.
- Latin America: A standout region, with 30% revenue growth and 34% EBITDA growth, driven by webmotors’ extended market leadership.
CEO Commentary
Cameron McIntyre, CEO of CAR Group, highlighted the strength of the company’s global portfolio:
“We are pleased with our strong first-half performance, reflecting our long-standing strategy of investing for growth. Our teams across the world are delivering an exceptional experience for customers, and we continue to see significant opportunities across our key markets.”
McIntyre also noted positive momentum in Australia’s C2C payments initiative, which has processed $30 million in transactions to date, enhancing the buying and selling experience for consumers.
FY25 Outlook
Looking ahead, CAR Group expects to maintain strong growth across all regions:
- Australia: Continued growth in dealer leads, dynamic pricing, and media advertising.
- North America: Solid revenue and EBITDA growth despite delayed pricing changes.
- Latin America: Sustained high growth driven by audience expansion.
- Asia: Continued momentum in premium product adoption and home delivery services.
With a strong balance sheet and disciplined investment strategy, CAR Group remains well-positioned for further innovation and long-term growth. Investors can expect ongoing revenue and earnings expansion in the second half of FY25.
