MotorCycle Holdings (ASX:MTO) Reports FY24 Financial Results
Financial Performance and Market Share
MotorCycle Holdings (ASX:MTO) demonstrated resilience in FY24, despite a challenging market. The company achieved a Statutory Net Profit After Tax of $14.1 million and an Underlying EBITDA of $45.2 million. Total new motorcycle retail unit sales increased by 5%, contrasting with a 3% industry decline. Notably, market share grew from 14.3% to 15.5% during the year. CEO Dave Ahmet noted, “The strength of our business model consolidates our market-leading position.”
Strategic Initiatives and Operational Efficiencies
In response to economic pressures, MotorCycle Holdings focused on operational efficiency and reduced its geographical footprint at three retail sites. The company upgraded its operating systems at Cassons and consolidated New Zealand operations with Forbes & Davies. Online parts and accessories sales surged by 183% compared to the previous year. Plans for further growth include enhancing online sales in FY25.
Shareholder Returns and Future Outlook
The Board declared a fully franked final dividend of 7 cents per ordinary share, totaling 10 cents for the year, underscoring its commitment to shareholder returns. Current trading conditions are promising, with sales trending higher and management prioritising cost control. Ahmet expressed optimism, stating, “We expect to deliver a better result this year.”
Leadership Changes
The company announced significant leadership transitions. CEO Dave Ahmet will step down on 2 December after founding MotorCycle Holdings. Matthew Wiesner will succeed him, bringing over 20 years of automotive experience. Nicole Spink was appointed as the new Chief Financial Officer, having served 16 years with the company. Michael Poynton also assumes the role of Chief Operating Officer.
Conclusion
MotorCycle Holdings remains focused on growth, having successfully navigated market challenges. The company intends to leverage its strengthened position to explore future opportunities while continuing to deliver value to shareholders.
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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