Carsales (ASX:CAR) achieves double-digit earnings growth in FY21

Company News

by Lauren Evans

Carsales (ASX:CAR) demonstrated continued momentum in their domestic and international portfolio for the period ending 30 Jun 2021 (FY21).

Key marketplace businesses in Australia, South Korea and Brazil all strengthened their market leadership positions, with car buyers and sellers using these sites at record levels.

Carsales achieved double-digit earnings growth with adjusted earnings before interest, taxes, and amortisation (EBITDA) up 10 per cent from the prior year. Adjusted net profit after tax (NPAT) was also up 11 per cent, the highest annual net profit growth in 7 years.

Adjusted revenue was up 4 per cent from the prior year, driven by strong international growth particularly in South Korea and Brazil.

Operating cash flow conversion of 105 per cent and a strong balance sheet supported a final dividend of 22.5 cents.

Carsales' CEO Cameron McIntyre said: “While the COVID-19 environment has been very challenging for carsales, we are proud of the way we have navigated the challenge. We acted decisively to protect our customers and employees which has left our business in a strong position."

Shares in Carsales (ASX:CAR) are trading 0.84 per cent lower at $22.40.

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