• CAR Group to exit its Australian Tyres business unit
• Tyres business has been unable to achieve sustainable profitability
• Proforma financial results to be presented excluding Tyres business
• Group expects to deliver good growth in Proforma Revenue, EBITDA and Adjusted NPAT

CAR Group Limited (ASX:CAR) has announced that following a strategic review, it has decided to exit its Australian Tyres business unit, which comprises the wholesale division tyreconnect and the e-commerce platform tyresales.com.au. This decision comes after the Group faced continued difficulty in achieving sustainable profitability in the highly competitive tyre retail and wholesale market. CAR Group has reached an agreement to sell certain assets of tyreconnect to a third party, with the sale expected to be completed by the end of February. The tyresales.com.au platform will be closed effective 14 January 2025. The Group will announce its H1 FY25 results on 10 February 2025, which will include the presentation of financial performance on a Proforma basis, excluding the Tyres business unit to reflect the underlying performance of the Group. Proforma results for FY24, which exclude the Tyres business unit, are also provided for comparative purposes. On a reported statutory basis, CAR Group expects to incur costs associated with the exit, including redundancy costs and asset write-downs, but these costs will not be material to the Group and will be treated as abnormal costs excluded from the Proforma and Adjusted reporting results.

Due to the closure of the Tyres business unit, the Group expects to deliver good growth in Proforma Revenue, Proforma EBITDA and Adjusted NPAT on a constant currency basis in FY25 compared to FY24. The Group also expects to see similar Proforma EBITDA margins in FY25 versus FY24.