SUL –12.48%: Not a super result from SUL, though a better trading update for the first 7 weeks of 2025 should have provided some support for the stock.
- 1H25 Revenue of $2.11 billion, up +4% y/y, inline with consensus.
- Supercheap Auto revenue $773.8 million, estimate $801.5 million.
- Rebel revenue $706.5 million, estimate $689.5 million
- BCF revenue $518.4 million, estimate $515 million
- 1H25 Group earnings (EBIT) of $218m was below consensus of $225m
- Underlying profit of $131m was lower than $138m expected.
- Interim dividend per share $0.32 was flat on the year.
A weak result driven by softness in Super Cheap Auto, which is their largest business due to competition. On the positive side, Rebel delivered a better-than-expected result. Further, early trading in 2H25 is tracking ahead of expectations with sales growth 7% (vs 4.5% expected), though they noted there was some benefit from Boxing Day timing.
Overall miss, amplified by strength in the share price ahead of results. We thought a ~10% pullback in the share price would have been about right, however the stock was off more than 15% at the lows.
MM sees the pullback in SUL as a buying opportunity
Add To Hit List
