The Colonial Motor Company (CMO) H2 2024 earnings summary

Executive summary

• Trading profit after tax was $17.9m, reflecting a deteriorating market and challenging trading environment, with the second half of the year impacted by recession, high interest rates, and oversupply in the vehicle market.

• Profit for the year attributable to shareholders dropped to $4.5m from $27.8m year-over-year, mainly due to a one-off non-cash deferred tax adjustment of $12.7m.

• Total comprehensive income attributable to shareholders was $4.3m, down from $27.7m in the prior year.

Financial highlights

• Total revenue increased to $1,012.9m from $997.2m year-over-year.

• Trading profit before tax fell to $27.7m from $45.1m year-over-year.

• Profit for the year was $6.4m, down from $30.0m year-over-year.

• Basic and diluted EPS on profit attributable to shareholders was 13.9c, down from 85.2c year-over-year.

• Dividend per share was 35.0c, representing 64% of after-tax trading profit.

Outlook and guidance

• Demand for light vehicles is expected to remain subdued as long as interest rates stay high, with oversupply and increased competition likely to pressure margins.

• Ford Ranger and Everest models are expected to provide some support to dealerships.

• Alignment of New Zealand and Australian emissions standards is seen as a positive industry development.