• Disappointing financial performance in 1H25 reflecting issues in Australian wholesale and commercial retail divisions
• Implementing improvement plan including inventory and cost reduction, leadership changes, and transition from Dunlop distribution
• Focusing on debt reduction, cost control, and profitability over growth in commercial retail in 2H25

NTAW Holdings, a large tyre and wheel importer in Australia and New Zealand, reported a disappointing financial performance in the first half of FY2025. The poor results largely reflect challenges in the company's National Tyre & Wheel (NTAW) Australian wholesale division and the commercial retail business units (Black Rubber and Tyreright in Australia, and Carter's in New Zealand). The company's gross profit margin declined from 31.2% in 1H24 to 28.9% in 1H25, while operating costs increased, leading to a significant drop in EBITDAI and EBITDA. The company reported an operating NPATA loss of $0.7 million, compared to a profit of $2.3 million in the prior corresponding period.To address these issues, NTAW Holdings has implemented an improvement plan, which includes reducing inventory and debt, ensuring a smooth transition from the Dunlop distribution, and pursuing profit over growth in the commercial retail business units. The company has also made important changes to its senior leadership team, with the appointment of Warwick Hay as the new Group CEO, Simon Billington as CEO of NTAW, and Geoff May as CEO of Black Rubber.For the second half of FY2025, the company's priorities include reducing debt, aggressive cost reduction, maintaining momentum in its core brands and new revenue streams to replace Dunlop sales, and a back-to-basics approach in the commercial retail division focused on branch profitability and cost control before revenue growth.

The company expects to achieve annualised cost savings in the range of $6-7 million by June 2025.

NTAW Holdings is focused on implementing its improvement plan, which includes reducing costs, inventory, and debt, as well as transitioning from the Dunlop distribution and refocusing the commercial retail division on profitability. The company is confident in its core assets, including its experienced management team, deep customer relationships, and strong supplier partnerships, and believes these will support its turnaround efforts.