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Highlights

  • Eagers Automotive is engaged in selling new and pre-owned motor vehicles, distributing and selling parts, accessories, and car care products
  • In FY23, APE’s revenue increased by 15% YoY to AUD 9,851.7 million
  • In 2024, the company expects to report revenue growth of nearly AUD 1.0 billion

Eagers Automotive Limited (ASX: APE) is in the business of selling both new and pre-owned motor vehicles, distributing and selling parts, accessories, and car care products, offering vehicle repair and servicing, providing extended warranties, and managing property and investments.

In the financial year 2023 (FY23) ended 31 December 2023, revenue of the company grew by 15% YoY to AUD 9,851.7 million, driven by contribution from acquired businesses in the South Australia and Australian Capital Territory. EBITDAI during the period stood at AUD 688.5 million and statutory profit after tax dropped to AUD 299.1 million, driven by higher finance costs.

Growth prospects for consumer sector stocks

According to the report released by the Australian Bureau of Statistics (ABS) on 3 May 2024, in March 2024, household spending increased by 2.1% annually. The data released by ABS on 9 May 2024 indicated that payroll jobs for the month through 13 April 2024 reported a growth of 2.2% annually. Both household spending and payroll jobs are still recording positive change on an annual basis, projecting upside potential for consumer sector companies’ earnings.

Outlook

In 2024, the company expects to report revenue growth of nearly AUD 1.0 billion. The company intends to maintain its industry-leading productivity levels by escalating its scale and technology-enabled operating platform, which extends a substantial operational advantage over the rest of the industry.

Moreover, the company’s management is undertaking strategic expansion opportunities in the New Zealand and Australia markets.

Share performance of APE

APE shares closed 3.24% lower at AUD 11.960 on 9 May 2024. In the past one year, APE’s share price has declined by almost 14.69% and in the last three months, it has decreased by 14.02%.

The 52-week high of APE is AUD 16.060, recorded on 4 September 2023, while the 52-week low is AUD 11.830, recorded on 3 May 2024.

APE Daily Technical Chart, Source: REFINITIV

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 09 May 2024. The reference data in this report has been partly sourced from REFINITIV.