ARB Corporation Limited (ASX:ARB) Announces Half Year Results
Financial Performance
ARB Corporation Limited reported sales revenue of $361.7 million for the half year ended 31 December 2024, marking a 5.9% increase from the previous year. Profit before tax was $70.3 million, a slight decrease of 0.7%, while net profit after tax was $50.952 million, down 0.6%. Net tangible assets per security rose to $8.08, a 13.5% increase.
Operational Highlights
The Australian Aftermarket segment saw a 1.9% growth despite challenges in new vehicle sales. Exports increased by 15.4%, with US sales rising by 18.7%. ARB expanded its store network to 75 ARB stores in Australia, including new flagship stores in Kilsyth, Bundaberg, and Mornington. Strategic acquisitions included MITS Alloy and the addition of ARB Toowoomba.
Strategic Investments
ARB increased its ownership in US associate ORW to 50%, facilitating the acquisition of 4 Wheel Parts’ 42 retail stores. This expansion positions ARB for long-term growth in the USA market, supported by a strong balance sheet and no debt.
Dividend Announcement
The Board declared an interim dividend of 34.0 cents per share, fully franked at a 30% tax rate, to be paid on 17 April 2025 with a record date of 3 April 2025. A Dividend Reinvestment Plan and Bonus Share Plan will be available for investors.
Executive Comments
Chairman Robert Fraser stated, “The Company’s outlook remains positive with ongoing healthy demand for ARB’s products, new vehicle model releases around the world, healthy gross profits despite relatively high inflation and new products recently and soon to be released to market. ARB is well positioned to achieve long-term success with strong brands around the world, loyal customers, very capable senior management and staff, a strong balance sheet and growth strategies in place.”
Motley Fool contributor Matt Burgess has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended ARB Corporation. The Motley Fool Australia has recommended ARB Corporation. 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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