APE -15.01%: the car retailer hosted their AGM today with some soft trading commentary sending the stock to its lowest level since 2022. Revenue to April is running 18% higher than 1H23 which is well and truly on track to meet consensus expectations for the first half. The issue lies with Profit Before Tax (PBT) with the company saying they expect PBT to fall 15% in the half, a ~15% miss to consensus. Eagers pointed to a weaker consumer as the main reason for the miss, however, it seems hard to justify given the strength on the revenue front. The company is sitting on a significant BYD inventory position while the growth in EV sales hasn’t met expectations. High inventory levels have led to higher costs and significant discounting which looks to be the key reason for the poor update.
MM has no interest in APE
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