Key Updates
- Exit from Tyres Business:
CAR Group has decided to exit its Australian Tyres business unit, which includes the wholesale division tyreconnect and the e-commerce platform tyresales.com.au, following challenges in achieving sustainable profitability in a competitive market. - Asset Sale:
Certain assets of tyreconnect will be sold to a third party by February 2025, while tyresales.com.au will cease operations effective 14 January 2025. - Financial Impact:
The transaction and associated costs, including redundancy and asset write-downs, are not expected to be material to CAR Group. These costs will be treated as abnormal items and excluded from Proforma and Adjusted reporting results.
H1 FY25 Results Announcement
- Release Date: Monday, 10 February 2025.
- Proforma Basis: Financials will exclude the Tyres business to reflect the ongoing performance of the Group.
Proforma Financials Overview
| $A Millions | H1 FY24 (Excl. Tyres) | H2 FY24 (Excl. Tyres) | FY24 (Excl. Tyres) |
|---|---|---|---|
| Revenue | 503 | 538 | 1,041 |
| EBITDA | 277 | 304 | 581 |
| NPAT | 164 | 180 | 344 |
| EBITDA Margin (%) | 55.1% | 56.4% | 55.8% |
Proforma results indicate stable EBITDA margins above 55% despite the removal of the Tyres unit.
FY25 Group Outlook (Proforma)
- Revenue Growth: Good growth in Proforma Revenue expected on a constant currency basis.
- Profitability: Proforma EBITDA and Adjusted NPAT are anticipated to grow, with EBITDA margins in FY25 similar to FY24 (Proforma).
CEO Commentary
The exit aligns with CAR Group’s focus on higher-margin businesses and a streamlined portfolio. The Group’s strong Proforma performance highlights its resilience and ability to adapt to changing market dynamics.
Key Takeaways
This strategic realignment allows CAR Group to concentrate on its core operations, with a clear path for revenue and margin growth in FY25. Investors will now focus on the upcoming H1 FY25 results and updates on Proforma performance trends.
