Eagers Automotive (ASX: APE) has outperformed retail motor industry benchmarks by posting record revenue of $11.2 billion for the 2024 full year, a 13.6% increase on the previous corresponding period (pcp).

The result was driven by the group’s core franchised automotive business, as well as recent large-scale acquisitions and continued growth in Eagers’ national retail partnership with electric vehicle manufacturer BYD.

Eagers chief executive officer Keith Thornton said the annual performance reflected a strategy that had sustained the business in a challenging market.

Productivity drive

“We have been relentless in driving industry-leading productivity, using the tailwinds of a recent high-demand/low-supply environment to transform our operating model,” Mr Thornton said.

“We are confident we have developed a far more resilient business that is able to perform consistently through cycles while providing a platform for future growth.”

“Today’s result demonstrates the benefits of this multi-year transformation and how Eagers continues to build an enduring and ever-growing competitive advantage.”

Goodwill impairment

Full-year net profit before tax of $335.6m dropped from $427.3m in the pcp.

This was primarily related to a $21.2m impairment of the group’s New Zealand goodwill and leased assets business and $9.4m in acquisition and integration costs.

Net profit after tax was $222.9m, compared to $299.1m in 2023.

Record easyauto123 profit

Eagers’ national independent pre-owned vehicles business easyauto123 delivered a record full-year operating profit before tax of $369.4m, which the company attributed primarily to a “unique competitive advantage” in vehicle sourcing.

The value of the group’s property portfolio increased to $885.4m by year-end compared to $597.9m in December 2023, on the back of strategic dealership acquisitions in Victoria, the Northern Territory and Queensland.

Higher interest and depreciation costs associated with the larger property portfolio led to a significantly reduced underlying profit before tax of $8.3m (compared to the previous year’s $16.4m).

Cash and inventory

Eagers had $773.9m of available liquidity and $813.1m in corporate debt (net of cash at hand and up from $262.7m in the pcp) at the end of December.

Total inventory levels increased to $1.87b from the $1.62b of a year earlier, with the group holding 54 days of vehicle supply (down from 64 days).

The cash position at year-end was $183.7m, driven by operating cash flows of $338.9m and enabling business and property acquisitions, continued investment in new automotive retail formats and the payment of shareholder dividends.

Strong outlook

Mr Thornton said the outlook for the coming year remained strong.

“We expect resilient new car demand and positive industry dynamics emerging over the course of 2025, which will help us deliver a third consecutive year of material growth with a forecast additional revenue of $1b,” he said.

“We see no shortage of growth possibilities—the industry is consolidating and continuing to evolve at an unprecedented pace and our unrivalled scale and highly productive underlying business position us well to keep building on our performance.”