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Road to success: Eagers tips $1b in growth as car demand remains strong

Business

Eagers Automotive has said it would exceed its previous forecast of $1 billion in revenue growth this year on the back of strong expansions and acquisitions.

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The Brisbane company’s forecast followed the announcement of a half year profit of $150 million, down from $178 million for the same period last year.

It boosted its dividend to a record 24 cents a share from 22 cents last year.

The profit was on the back of revenue of $4.8 billion and a balance sheet that included a cash position of $350 million.

“The strength of our balance sheet, evidenced by our liquidity position, low gearing and high-value property portfolio, provides the company with the capacity and flexibility to pursue accretive growth opportunities while insulating the business in the event of any material headwinds,” the company said.

The company boomed during the Covid era as consumers used retained savings to buy new cars. Used car prices also soared because of the breakdown of the logistics chain.

“While moderating from the highs of the first half of 2022, demand remains resilient and we expect demand to be broadly in line with supply across the industry for the full year,” the company said.

“In addition to these underlying market dynamics, the unique combination of organic, greenfield and acquisition initiatives completed in 2022 and the first half of 2023 provide the foundation for the company to exceed its guidance of $1 billion in revenue growth for 2023.”

 

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