Peter Warren Automotive increases dividends as it prepares for EVs

Australian car dealership group Peter Warren Automotive is upping its dividend as it prepares to increase its stock and service of electric vehicles (EVs). The company recently raised its first-half dividend by 22% to AUD 0.11 per share after announcing a 27% rise in net profit to AUD 30.2m for the six months ending December 31, 2022. Revenues were also up by 28% at AUD 999m.

However, Mark Weaver, the company’s CEO, highlighted the huge knowledge gap among most consumers about EV ownership, and the fact that “range anxiety” has reached extremely high levels. Weaver said there was an obsession with having a fully charged electric vehicle, leading to overblown fears of running out of charge, particularly for metropolitan drivers. He emphasized the need for educating the public about EV ownership and called for a multi-pronged approach that is shared by vehicle manufacturers, dealers, and governments.

Peter Warren Automotive operates 22 dealership locations in Queensland, New South Wales, and Victoria across 27 different vehicle types. It sells EV models under various brands, including Renault, Kia, Volvo, Audi, Hyundai, and Mercedes-Benz. However, the core of its sales still comes from petrol and diesel models.

The company is part-way through a review of its dealership network and its capacity to stock and service more electric vehicles. That includes bolstering power supplies to ensure vehicles can be charged at dealerships and during regular services.

The Federal Chamber of Automotive Industries announced in February that the Tesla Model 3 was the third-highest-selling vehicle in Australia last month across an overall market that was the strongest in five years as the global supply of new models started improving and long wait lists were trimmed. Sales of pure battery-powered electric vehicles in Australia made up 5.71% of the total market at 4852 vehicles. When hybrid and plug-in hybrid vehicles were included, the electrified segment amounted to 12.3% of total sales.

Peter Warren Auto shares gained 2% in early trade on the ASX to AUD 2.80. The company is below its issue price of AUD 2.90 when it listed on the exchange in early 2021 after raising AUD 260m in a public float. The stock reached AUD 3.80 in May 2021.