The CAR Group Limited (ASX: CAR) share price is up more than 3% after releasing a pleasing FY24 result.
This ASX share operates Carsales.com and has marketplaces in South Korea, the US, Chile and Brazil.
CAR Group FY24 result
Here are some of the highlights from the 12 months to 30 June 2024:
- Revenue rose 41% to $1.1 billion
- Underlying EBITDA increased 37% to $581 million
- Underlying net profit after tax (NPAT) grew 24% to $344 million
- Statutory net profit declined 61% to $250 million
- Final dividend per share hiked by 18% to $0.38.5
The company said double-digit revenue and earnings growth in Australia was supported by a “robust used car market and strong operational performance”. Australian dealer revenue rose 12%, while private ad market revenue increased 10%.
Its South Korean business “continues to grow its proportion of premium products and the volume of fully digital transactions.” Asian revenue rose 17% and adjusted EBITDA increased 13%.
It revealed that the acquisitions in Brazil and the US are “performing very well” and management believe those businesses will drive significant long-term value for shareholders.
FY24 North American proforma revenue rose 17% and proforma EBITDA grew 18%. Latin American pro forma revenue rose 31% and proforma EBITDA increased 39%. The proforma numbers assume it had ‘consolidated’ Trader Interactive and Webmotors in the prior and current reporting periods to give a reflection of their actual performance.
CAR Group described the first year as majority owner of Webmotors in Brazil as “outstanding”, with its partnership with Santander “stronger than ever”.
In North America, the company “delivered excellent results” by investing in growing its audience and improving technology.
Management commentary
CEO of CAR Group, Cameron McIntyre, said:
We have maintained significant market leadership across the group. Our data and technology provide real value for our customers. As the vehicle transaction process becomes increasingly digital, we see great potential to deliver even better outcomes for our customers.
In media, we are leveraging new technology and IP across the group, leading to improved advertising viewability, yield, and consumer experience. Our dynamic pricing engine has successfully increased private ad yields in both the US and Brazil following its implementation in those markets.
The addressable markets we operate in are large and under penetrated and we have multiple levers to deliver future growth. With a strong balance sheet and conservative leverage, we are well-positioned to invest in technological innovation and deliver great outcomes for our customers.
Our momentum gives us confidence in our ability to continue to grow the business over the coming years.
Outlook for the CAR Group share price
In FY25, the business is expecting to deliver “good” growth in revenue, adjusted EBITDA and adjusted NPAT terms, on a constant currency basis. It’s expecting the adjusted EBITDA margin to be similar in FY25.
It’s expecting solid revenue growth across all of its segments. Internationally, the business is expecting solid EBITDA growth.
In the last year, the CAR Group share price has gone up more than 30%. I wouldn’t call it good value today, so I’d rather wait for a better price (price/earnings ratio) if I were interested. But, for me, there are other ASX growth shares that are more interesting.
