West Australian-based Automotive Holdings Group (AHG), which owns local dealerships John Andrew Ford, North Harbour Ford, Manukau Nissan and Davie Motors, has reported a record revenue and profit for financial year 2015 (FY15)
AHG’s combined car and truck sales for Australia and New Zealand increased by 12,274 vehicles in 2015, up by 12% on 2014 sales, ensuring it remains the biggest earner for the retail and logistics group.
The Group’s net profit after tax was AUD $88.1 million, up 20.8% on the previous corresponding period. AHG also recorded revenue of AUD $5.2 billion, an increase of 10.8% on the previous year.
Managing director Bronte Howson says the outlook for the automotive market remains strong, and AHG is well placed to continue its strategic expansion.
“This result underlines the strength of AHG’s growth strategy with a strong contribution from the acquisition of Bradstreet Motor Group (in New South Wales) and the continued expansion of our refrigerated logistics business,” says Howson.
Revenue from the automotive retail division was up 10% to AUD $4.271 billion.
“In addition to an outstanding result in New South Wales, we’ve also recorded improved performances in Queensland, Victoria and New Zealand,” says Howson.
Used car sales accounted for more than one-third of AHG’s car sales in the 2015 financial year. AHG sold 6225 more used cars to June 30, 2015, outstripping the group’s new car sales growth by more than 1500 vehicles.
The increase in AHG’s second-hand sales points to sagging consumer sentiment, according to analysts, particularly in its home state of Western Australia, which also has its largest dealership network.
Marketwide car sales in Australia slumped to 9% in the 12 months to July compared to 6% growth in total car sales in New South Wales for the same period.
AHG reaps a higher margin on used cars than on new vehicles but second-hand sales also benefit the group’s service division, which enjoyed an 8% lift in service or repair orders in the financial year.
AHG’s other logistics division saw revenues decrease by 13.3% to AUD $365.2 million, contributing Operating EBITDA of AUD $10.5 million. Operating EBITDA margin was 2.9%.
Howson said some factors impacted the result in this division.
“A change by Mitsubishi in its parts distribution model in Western Australia reduced AMCAP revenues, the AUD/EUR exchange rate negatively impacted KTM and Husqvarna imports,” says Howson.
“The downturn in the broader bus and truck market had a negative effect on the operations of GTB/VSE and WMC,” he says.
