Appendix 4D and Half Year Financial Report

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Stock ARB Corporation Ltd (ARB.ASX)
Release Time 18 Feb 2025, 9:22 a.m.
Price Sensitive Yes
 ARB Reports Half Year Financial Results
Key Points
  • Sales revenue up 5.9% to $361.7 million
  • Profit before tax down 0.7% to $70.3 million
  • Interim dividend of 34 cents per share, fully franked
Full Summary

ARB Corporation Limited ('ARB' or the 'Company') generated sales revenue of $361.7 million for the half year ended 31 December 2024 ('1H FY2025'), up 5.9% compared with the previous corresponding period. Reported profit before tax and profit after tax for 1H FY2025 was $70.3 million and $51.0 million respectively, representing a decrease of 0.7% and 0.6% respectively over the previous corresponding period. Profit before tax and profit after tax for 1H FY2025 excluding non-operating items declined 4.5% and 4.6% respectively. The Board has declared an interim dividend of 34.0 cents per share, fully franked at a 30% tax rate. The Company's sales performance was driven by growth in the Australian Aftermarket and Exports, while Original Equipment sales declined slightly. ARB continued to invest in strategic initiatives, including the acquisition of MITS Alloy, an aluminium canopy manufacturing business, and increasing its stake in its US associate, ORW USA, Inc. to 50% to facilitate the acquisition of 4WP. The Company maintained a strong balance sheet with a cash balance of $22.8 million as at 31 December 2024 and no debt.

Guidance

ARB expects modest year-on-year sales growth in 2H FY2025 from new contracts with original equipment manufacturers.

Outlook

The Company's order book remains healthy, and daily sales order intake remains close to historical highs despite challenges in the Australian and global economies. ARB continues to invest for future long-term growth, pursuing opportunities to build its product range, increase distribution partners and sales channels, expand its store network, and invest in its people. The Board sees long-term growth opportunities in both Australia and export markets, particularly the US, and is excited by the prospects for its major US expansion strategy.