MotorCycle Holdings (ASX:MTO) Reports Strong FY24 Results

Financial Performance Highlights

MotorCycle Holdings Limited (ASX:MTO) reported a statutory net profit after tax of $14.1 million for FY24, marking a 39% increase from the previous year. The company recorded underlying EBITDA of $45.2 million, a rise of 18%, alongside a 1% increase in sales revenue, totalling $582.3 million. A final dividend of 7 cents per share has been declared, with the total dividend for the year reaching 10 cents per share, fully franked.

Strategic Growth Initiatives

The company has seen positive trends in market share and sales despite a challenging operating environment. After a downturn in late 2023 due to rising interest rates and cost-of-living pressures, sales have begun to rebound. CEO David Ahmet stated, “Our growth in market share demonstrates our industry leadership and strength of our business model,” highlighting their commitment to delivering value for shareholders.

Current Trading Conditions and Outlook

Looking ahead to FY25, MotorCycle Holdings expects inflationary pressures to persist but anticipates improvements in EBITDA margins. The integration of acquired businesses, including the recent Harley-Davidson dealership acquisition in Sydney, has already yielded profitability. Early trading results for the financial year suggest that growth may strengthen.

Executive Updates

New appointments within the executive team were announced, with Michael Poynton taking on the role of Chief Operating Officer and Nicole Spink becoming Chief Financial Officer. The transition reflects the company’s ongoing commitment to strategic management and operational excellence.

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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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