EAGERS Automotive has posted a record $11.2 billion in revenue for the 2024 calendar year, up 13.6 per cent on 2023 – but profits fell by 21.5 per cent (statutory before tax) to $335.6 million.

During the year Eagers made substantial increases in its property portfolio, finishing the year with $885.4 million of property assets, a jump from the $597.9 million it held at the end of 2023, while available liquidity was $773.9 million.

It said contributions to the record revenue result were from its core automotive business which rose on the buoyant new-car market, its recent large-scale acquisitions, its used-car and auction businesses, and growth in its retail joint venture with BYD and its national distributor EVDirect.

In its review of the year, it said new vehicle margins “remain resilient” and demand remained strong relative to historic levels.

“Strong earnings contribution from franchised automotive demonstrated the transformation of our business model through the successful mid-year execution of our Next100 Strategy,” director Tim Crommelin wrote in his report to the Australian Securities Exchange (ASX).

He said Eagers also had a record profit from its independent used-car business, easyauto123 and auction house Carlins, that boosted its “unique competitive advantage in vehicle sourcing and continued execution of benchmark operating model to drive outperformance.”

It said its RJV with BYD and Foton trucks also produced a record profit contribution, along with recent acquisitions including two Hino dealerships in the ACT and NSW.

Tim Crommelin

Eagers has declared a final dividend for 2024 of 50 cents a share fully franked (the same as 2023) which, with the interim dividend paid in September 2024, is 74c/share for the full year.

“Maintaining that record payout that was set in FY23 demonstrates the confidence the board and management have in the underlying business, the continued progress against our strategic initiatives and the opportunities that will present in the near to mid-term,” Mr Crommelin said.

In his outlook, he said Eagers will continue “to pursue disciplined and material growth, with increasing contributions expected from the large-scale acquisitions completed in 2024, combined with anticipated growth in our retail joint ventures and maturing greenfield operations.

“While a number of positive trends supporting consumer sentiment have emerged, the company remains cautious of the impacts of recent economic and inflationary headwinds.

“Demand remains strong reactive to historic levels and vehicle margins are expected to remain consistent with long-term industry averages, supported by the strong gross profit margin embedded within our material order book.”

In 2025, he said that Eagers now expects:

• A third consecutive year of growth with another $1 billion in revenue growth.
• Resilient new-car market performance with demand supported by the order bank and the expectation of positive industry dynamics emerging over the course of 2025.
• Sustainable net margins with further improvements delivered “through our transformed business model, leveraging the scale, geographic diversity and relentless execution of our unique strategic initiative.” 
• Opportunity for profit improvement through deeper integration of recent acquisitions in the core business.
• Continued growth in the RJV through network and product expansion; and the used-car business
• A disciplined review of accretive growth opportunities consistent with the Next100 Strategy.