ARB (ARB) H2 2024 earnings summary

Executive summary

• FY 2024 sales revenue rose 3.3% to AUD 693.2 million, with stronger growth in the second half and net profit after tax up 16.1% to AUD 102.7 million.

• Profit before tax increased 15.8% to AUD 141.4 million, driven by improved gross margins and operational efficiencies.

• Growth was led by Australian Aftermarket and OEM channels, while export sales declined due to challenging international conditions.

• Strong new vehicle sales for core models like Ford Ranger, Toyota HiLux, and Isuzu D-Max supported demand.

• Strategic investments in store development, R&D, and international expansion position the company for future growth.

Financial highlights

• Underlying profit before tax (excluding non-operating items) was AUD 142.7 million, up 17.1%.

• Gross margin improved as materials and consumables fell to 43% of sales from 47% last year.

• Cash flows from operations were AUD 125.3 million; year-end cash at AUD 56.5 million with no debt.

• Earnings per share increased 15.7% to AUD 1.249.

• Fully franked dividends for FY 2024 totaled AUD 0.69 per share, up 11.3%.

Outlook and guidance

• Aftermarket and export order books remain strong; Q1 FY 2025 sales have started positively.

• FY 2025 expected to return to growth, with continued expansion in US, OEM, and e-commerce channels.

• OEM sales forecast to grow, supported by new contracts.

• Profit before tax margin targeted to remain above 20% in FY 2025, contingent on sales growth.

• Strategic acquisitions in product and distribution are under consideration, both domestically and internationally.