ARB -4.05%: Fell today although the worst of it was seen early thanks to a 27% decline in FY23 NPAT to $88.5m, ~7% below consensus estimates of $95.5m. Top line sales were off 3.4% to $671.2m, but largely in line while the final dividend of 30cps was a touch light on (31.5c consensus). They remain in a strong position, with net cash of $45m, however cost pressures in FY23 were an issue. They do expect sales and profits to grow in FY24 and they said cost pressures are subsiding which will help margins gets back to historical levels. A trading update for the first past of FY24 will be provided in October at their AGM.
- It looks like the worst is behind ARB and FY24 will return to profit growth – weakness here looks like an opportunity.
MM has now turned more bullish on ARB
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