ARB +10.2%: A great session for the aftermarket 4wd accessory retailer with net income for the first half-year of $51.3m, up 8.1% YoY and ahead of consensus. Impressively, the 8% uplift in earnings came with only a slight 0.2% increase in sales showing good improvement on the cost side driving better margins. The interim dividend of 34cps was inline with consensus. They talked up momentum in January, saying sales were going well while they maintained a positive outlook for the year ahead. Interesting to note that new vehicle sales in Australia have returned to growth with the Ford Ranger, Toyota Hilux and Isuzu D-Max being the three highest-selling vehicles in Australia in 2023, which lend themselves to after-market up specs.
- Shares hit 2-year highs today and deservedly so – a strong result from a quality operator that has dealt with a lot over the last few years. Better times ahead for ARB.
MM is bullish ARB
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