CAR Group (CAR) H2 2024 earnings summary

Executive summary

• Achieved double-digit revenue and earnings growth across all key markets for FY24, reflecting strong operational execution, resilient and diversified global business model, and market leadership in digital vehicle marketplaces.

• Recent acquisitions in Brazil (Webmotors) and the US (Trader Interactive) performed strongly, contributing to significant revenue and EBITDA increases, diversification, and long-term value.

• Diversified revenue streams and geographic presence enhanced resilience and growth opportunities.

• Continued investment in technology, product innovation, and expansion into adjacent markets such as marine.

• Maintained significant market leadership, leveraging technology and data to enhance customer value and operational outcomes.

Financial highlights

• Proforma revenue reached $1,099m, up 17% year-over-year in AUD and 15% in constant currency; proforma EBITDA was $581m, up 17% in AUD and 16% in constant currency.

• Adjusted NPAT increased 24% to $344m; adjusted EPS rose 17% to 91.3 cents.

• Reported NPAT was $250m, down from $646m in FY23 due to a one-off $487m acquisition gain.

• Final dividend of 38.5 cents per share, up 18% and franked at 50%.

• EBITDA to operating cash flow conversion was 99%; leverage reduced to 1.7x EBITDA.

Outlook and guidance

• Expects continued growth in revenue, adjusted EBITDA, and adjusted NPAT for FY25 on a constant currency basis, with group EBITDA margin to remain similar due to reinvestment and growth in lower-margin businesses.

• Australian business anticipates growth in dealer, private, and media revenue, supported by dynamic pricing and product innovation.

• North America, Latin America, and Asia all forecast to deliver good to strong revenue and EBITDA growth.

• Early FY25 trading has started well, supporting confidence in guidance.

• Ongoing investment in technology and product innovation expected across all regions.