AP Eagers (ASX:APE) yet to pay back JobKeeper subsidies despite upbeat profit data

Company News

by Michael Luu

Automobiles retailer Eagers Automotive (ASX:APE) has reported an increase of $29 million in operating earnings for April, as the company’s operating profit for the first four months of the calendar year surged to $127 million.

The hike in car sales stemmed from increased traffic activity on roads in the wake of easing pandemic restrictions across the nation.

The $3.7 billion car dealer experienced “unusually strong market dynamics”, as domestic car buyers demanded more products than the dealerships could supply.

As many car retailers have had to resort to foreign imports to stock up, many automobile shipments have faced long delays.

Despite these encouraging profit indicators, the company has not responded to politicians and market advocates’ call for high-performing businesses to repay JobKeeper subsidies. Eagers Automotive accessed $130 million from the JobKeeper payment package to support employment of its staff during the coronavirus pandemic.

Shares in Eagers Automotive are trading 0.55 per cent lower at $14.35