RPM Automotive Group Limited (ASX:RPM) Announces H1 FY25 Financial Results
Financial Performance
RPM Automotive Group Limited reported a 6% increase in revenue, reaching $60 million in H1 FY25. Gross profit rose by 5% to $21 million, while net cash flow improved by $1.9 million to $1.5 million. However, EBITDA declined by 10% to $4.8 million, and net profit after tax fell to a loss of $1.2 million.
Strategic Initiatives
The company divested a non-core underperforming asset (AFT Automotive) and implemented a tyre recycling program. These actions are part of RPM’s strategy to focus on growth opportunities and enhance sustainability.
Division Performance
The Wheels and Tyres division saw a 24% revenue increase to $23.3 million. The Repairs and Roadside division reported $19.7 million, a 5% decrease. Performance and Accessories achieved $12.6 million in revenue with 20% EBITDA, while Motorsport anticipates strong performance in H2 FY25.
Outlook
RPM Automotive Group Limited expects a stronger second half of FY25, with anticipated improvements in both revenue and EBITDA. The company remains focused on expanding its tyre recycling business and optimizing operational efficiency.
Executive Comments
CEO Clive Finkelstein stated, “Over the past six months, our focus has been on building for the future, while optimising operational resources and streamlining our business. A great deal of time, money and energy has been invested in our Tyre Recycling Program, which although it did not contribute to H1 from an income point of view, has had an impact on the results.”
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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