Motorcycle Holdings (MTO) H2 2024 earnings summary

Executive summary

• FY2024 was challenging due to normalization post-COVID and weaker discretionary spending, but sales revenue increased 1% to AUD 582.3 million year-over-year.

• Full-year contribution from the Mojo acquisition and diversification supported revenue stability and market share gains in a contracting market.

• The business model proved resilient, outperforming the broader market despite industry-wide declines.

• Underlying EBITDA fell 18% to AUD 45.2 million, with margin decreasing to 7.8% from 9.6%.

• Net profit after tax declined 39% to AUD 14.1 million year-over-year.

Financial highlights

• Sales up 1% to AUD 582.3 million; like-for-like sales down 4% to AUD 450.6 million.

• Gross profit margin decreased to 25.6% from 26.3% year-over-year.

• Underlying EBITDA down 18% to AUD 45.2 million; like-for-like underlying EBITDA dropped 28% to AUD 27.7 million.

• Net profit after tax down 39% to AUD 14.1 million; net assets up 1% to AUD 200.2 million.

• Final dividend of AUD 0.07 per share, total FY2024 dividend AUD 0.10 per share; basic EPS for 2024 was AUD 0.192.

Outlook and guidance

• Cost of living and interest rate pressures expected to persist, but cost base has been stabilized.

• Focus on business improvement, cost control, and EBITDA margin recovery.

• Expansion in New Zealand and further growth in Mojo and CFMOTO brands expected.

• Stronger results anticipated from Cassons after business system upgrades.

• FY2025 expected to deliver a better bottom line, assuming stable market conditions.