CAR Group Accelerates Growth with 12% Revenue Rise in H1 FY25
CAR Group has reported robust half-year results for FY25, showcasing strong revenue and earnings growth across its global markets, underpinned by strategic diversification and innovation.
- Proforma revenue up 12% to $548 million
- Reported EBITDA increased 9% to $292 million
- Interim dividend raised by 12% to 38.5 cents per share
- Strong growth in Latin America and Asia segments
- Progress on Australian C2C payments initiative
Strong Financial Performance Across Markets
CAR Group Limited (ASX:CAR) has delivered an impressive set of results for the half year ended 31 December 2024, with proforma revenue climbing 12% to $548 million and proforma EBITDA rising in tandem by 12% to $302 million. The reported figures, which include the recently exited Australian Tyres business, also reflect solid growth with revenue up 9% to $579 million and EBITDA increasing 9% to $292 million.
The company’s ability to maintain a robust 55% proforma EBITDA margin highlights operational efficiency amid a diverse and expanding portfolio. This performance is a testament to CAR Group’s strategic focus on growth markets and product innovation.
Geographic and Segment Highlights
Latin America emerged as a standout region with revenue surging 30% and adjusted EBITDA up 34%, driven largely by webmotors’ market leadership in Brazil. Asia also posted strong results, with revenue growth of 15% and EBITDA up 12%, supported by premium product penetration and increased home delivery transactions.
In Australia, carsales consolidated its market leadership with a 9% revenue increase, buoyed by dealer and private segments as well as media revenue growth. The company’s innovative C2C payments platform has processed nearly $30 million in transactions, signaling a promising new avenue for customer engagement and revenue expansion.
North America showed resilience with a 9% rise in both revenue and EBITDA on a constant currency basis, despite challenging conditions in recreational vehicle markets. Media and depth product offerings were key contributors to this steady performance.
Strategic Outlook and Growth Prospects
CEO Cameron McIntyre emphasized the strength of CAR Group’s diversified global footprint and its commitment to investing in growth. The company expects to sustain good growth in proforma revenue, EBITDA, and adjusted NPAT for the full fiscal year, with margins remaining stable.
Looking ahead, the group anticipates continued momentum in dealer and private segments in Australia, further expansion of media products, and solid growth across North America, Latin America, and Asia. The strategic focus on innovation, such as the C2C payments initiative, positions CAR Group well to capitalize on evolving market opportunities.
With a robust balance sheet and prudent leverage, CAR Group is well placed to navigate market uncertainties and invest in future growth, reinforcing its vision to be the leading global digital marketplace for vehicles.
Bottom Line?
CAR Group’s diversified strategy and innovation pipeline set the stage for sustained growth amid evolving global automotive markets.
Questions in the middle?
- How will CAR Group’s C2C payments platform impact revenue and market share in Australia over the next year?
- What are the risks to growth in North America given the current recreational vehicle market conditions?
- How might currency fluctuations affect CAR Group’s reported results and outlook in FY25?