• Revenue growth of 6% in line with expectations
• Gross margin up 5% due to improved procurement and scaled network
• Operating costs up 10% reflecting increases across all metrics

RPM Automotive Group Ltd (ASX: RPM) has reported its H1 FY 25 results, highlighting a 6% increase in revenue to $60 million, in line with expectations and better than auto market conditions. The company's gross profit margin increased 5% to $21 million, driven by improved procurement and scaled network. However, operating costs were up 10% to $16 million, reflecting increases across all metrics. The company also divested a non-core underperforming asset as a strategic imperative, and fully repaid its convertible note. RPM continued to focus on working capital management, with a $3.7 million increase in cash balance to $7.7 million. Underlying EPS declined 56% to 0.49 cents per share. Looking ahead, RPM expects continued growth in H2 FY 25 with new revenue streams, product expansion in retail divisions, geographic growth in the wholesale division, and the implementation of its tyre recycling strategy.

RPM expects both group revenue and EBITDA to improve in 2H FY 25, with the implementation of its tyre recycling strategy expected to begin generating returns in 2H FY 25.

RPM expects continued growth in H2 FY 25 with new revenue streams, product expansion in retail divisions, geographic growth in the wholesale division, and a focus on controlling operating expenses, inventory management and exceptional customer service.