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Photo: RNZ / Nate McKinnon
Automotive retail and finance company Turners has reported record earnings despite the economic squeeze on consumers.
Key numbers for the year ended March compared to a year ago:
Net profit $33m vs $32.9m
Revenue $417m vs $389m
Full year dividend unchanged at 25 cents per share
High demand for replacement cars following the Auckland floods and Cyclone Gabrielle, record used imports, and increased margins lifted returns.
The company’s net profit for the year ended March was $33 million – up 1.5 percent – driven by used car sales.
Group revenue rose 7 percent to $417m up from $389m.
Earnings before interest and tax gained 12 percent to $58.6m, while net profit before tax was up 8 percent to $49.1m.
The insurance and credit divisions delivered steady growth while profits fell in its finance arm as high interest rates hit.
Chief executive Todd Hunter said he expects worsening economic conditions will impact Turners in the coming year but that would not slow its expansion plans.
“Our near term focus remains on exceeding the $50m NPBT goal in FY25, despite the economic backdrop,” Hunter said.
Planning is underway for four new sites and its most recent ones in Timaru and Napier were performing above expectation.
“The business model that we’ve put in place is certainly showing its resilience in a really challenging environment,” Hunter said.
“Three of our four businesses with material profit growth and obviously auto retail knocking it out of the park.”
Auto profit was up 27 percent and constituted more than than half of group profits.
Turners will pay a 25.5 cent dividend to its shareholders – up 11 percent from last year.
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