The AutoSports Group Limited (ASX: ASG) has reported a 2.1% growth in revenue to $1,369 million in the first half of the 2025 financial year in a luxury market where sales declined by more than 13%.
Floor plan and leasing costs also increased during the first half of the 2025 financial year. ASG says it outperformed the luxury market but at the expense of gross profit margin.
However, the recent acquisition of Stillwell Motor Group’s BMW, Mini, BMW Motorrad, Volvo Cars, MG and Ducati dealerships in Victoria contributed $80 million in revenue for the first half of 2025.
The listed automotive retail group says its gross margin fell by 1.4% from the previous corresponding period (PCP) to 18.3% as a result of lower new vehicle margins and lower OEM KPI bonuses.
Earnings before interest, taxation and amortisation (EBITA) of $80.1 million were 25.7% lower than the PCP, while normalised net profit before tax (NPBT) of $20.2 million was 63.1% lower than PCP.
Interest costs of $32.3 million were 17.9% higher than PCP.
But despite lower new vehicle sales in the first half of 2025, ASG reduced its like-for-like new vehicle inventory by $47.2M from FY24.
ASG represents more than 23 luxury and prestige brands with showrooms located in Brisbane, Gold Coast, Sydney, Melbourne and Auckland, New Zealand.
Established 19 years ago by founders and major shareholders, Ian Pagent and Nick Pagent, the company was listed on the ASX in November 2016
Following the Stillwell Motor Group acquisition, ASG now operates 67 new car dealerships, three used car outlets, six motorcycle dealerships and nine prestige vehicle collision repair facilities.
In FY24 ASG says it sold 22,000 new vehicles and 22,000 used vehicles creating revenue in excess of $2.6 billion.
It says the second half of 2025 will see it focus on Greenfield growth at six locations for the newly acquired Polestar and Zeekr brands, which like Volvo Cars form part of the wider Geely Group.
ASG will open Polestar Spaces in Alexandria and Artarmon in Sydney, NSW, and Port Melbourne and Chadstone in Melbourne, Victoria. It will open showrooms for the Zeekr brand in South Yarra and Doncaster in Melbourne.
The company says it will continue to consolidate the fragmented automotive retail market and continue to invest in organic growth streams while developing scale-based synergies to improve operating leverage.
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