Peter Warren Automotive Holdings Limited (ASX:PWR) Announces H1 FY25 Results
Financial Performance
Peter Warren Automotive Holdings Limited (ASX:PWR) reported a revenue increase of 2.2% to $1,229.4 million for H1 FY25. Underlying profit before tax (PBT) stood at $7.1 million, down 79.4% from pcp but in line with guidance provided on 12 December 2024. Underlying EBITDA decreased by 28.3% to $51.1 million, and statutory PBT fell by 81.1% to $6.0 million. Basic earnings per share were 2.10 cents, and the interim dividend per share was declared at 1.6 cents.
Dividend
The Directors have declared an interim dividend of 1.6 cents per share. The record date for determining entitlement is 27 February 2025, with the dividend to be paid on 26 March 2025.
Market Conditions
The Company states that Australia continues to face an increased supply of vehicles and heightened competition among brands. Customer demand has weakened compared to previous years, particularly impacting margins as OEMs adjust supply to better match demand. There has been a shift in customer preferences towards hybrid and PHEV models, with diminishing demand for BEV models. Peter Warren Automotive is focusing on inventory management, cost reductions, and revenue growth in other service lines to mitigate margin pressures.
Outlook
In the short term, the company expects market conditions to remain challenging with continued pressure on new car margins. However, management initiatives are anticipated to offset further deterioration in H2 FY25.
Executive Comments
Chief Executive Officer Andrew Doyle stated, “The first half saw market conditions for new cars become increasingly challenging. The industry over-supply impacted our margins and profitability, although we partially offset this by driving growth in our other service lines. As a management team we have deep experience in actively managing through these cycles. This includes managing our inventory, lowering our costs, driving performance and delivering on the opportunities.”
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 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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