CAR Group - FY24 Financial Results Announcement
CAR (CAR) Share Update August 2024 Sunday 11th
CAR Group Reports Mixed Financial Results for FY24
CAR Group Ltd (ASX: CAR) has released its financial results for the full year ended 30 June 2024, showing a significant increase in revenue but a substantial decrease in net profit.
Instant Summary:
- Revenue from continuing operations up 41% to A$1,098,724,000.
- Profit for the year after tax down 60% to A$261,036,000.
- Net profit attributable to members down 61% to A$249,972,000.
- Adjusted net profit for the period attributable to members up 24% to A$344,022,000.
- Final dividend declared at 38.5 cents per share, with a record date of 16 September 2024 and payable on 14 October 2024.
Financial Performance
CAR Group Ltd has reported a mixed set of financial results for the year ended 30 June 2024. While the company saw a 41% increase in revenue from continuing operations, reaching A$1,098,724,000, the profit for the year after tax fell by 60% to A$261,036,000. The net profit attributable to members also saw a significant decline of 61%, amounting to A$249,972,000.
However, the adjusted net profit for the period attributable to members rose by 24% to A$344,022,000. The Directors believe that the presentation of adjusted net profit provides a useful measure to assess the performance of the Group, excluding certain non-recurring or non-cash items.
Dividends and Shareholder Returns
The company declared a final dividend of 38.5 cents per share, with a record date of 16 September 2024. The dividend is payable on 14 October 2024. This brings the total dividends for FY24 to 73.0 cents per share, up 20% from the previous year.
Net Tangible Assets
The net tangible assets backing per ordinary share was reported at (300.0 cents), slightly down from (294.8 cents) in the previous year. This figure excludes all right-of-use assets leased by the Group.
The mixed financial results reflect both positive and negative trends within CAR Group's operations. The substantial increase in revenue indicates strong operational performance and market demand. However, the significant decrease in net profit may raise concerns among investors regarding the company's profitability and cost management. The adjusted net profit increase suggests that the underlying business performance remains strong, but the one-off items have impacted the overall profitability.
Investor Reaction:
Analysts are likely to have mixed reactions to CAR Group's financial results. While the revenue growth is a positive indicator, the sharp decline in net profit may lead to cautious sentiment among investors. The increase in adjusted net profit and dividends may provide some reassurance, but the overall market reaction will depend on the company's strategic plans to address the profitability concerns.
Conclusion:
Investors should closely monitor CAR Group's strategic initiatives and cost management efforts in the coming months. The final dividend and adjusted net profit figures are encouraging, but the significant drop in net profit warrants careful consideration. Staying informed on the company's performance and market conditions will be crucial for making informed investment decisions.