Turners Automotive Group Reports Profit Growth Amid Retail Challenges

Highlights:

• Profit Growth: Turners Automotive Group Limited (NZX: TRA) reported a $19.3 million net profit for the six months ending September 30, despite an 18% decline in retail profits.
• Dividend Commitment: Declared a 7 cents per share (cps) second-quarter dividend, with full-year guidance of at least 27 cps, ensuring consistent shareholder returns.
• Operational Resilience: Achieved a 3% increase in EBIT to $31.0 million, despite a 2% decline in total revenue to $209.9 million.

Profit and Revenue Performance

Turners Automotive Group Limited (NZX: TRA) has announced a net profit of $19.3 million for the six months ending September 30, showcasing resilience despite an 18% decline in profits within its retail division. The company’s total revenue experienced a 2% drop to $209.9 million, while earnings before interest and taxation (EBIT) rose 3% to $31.0 million, underscoring operational efficiencies amid market pressures.

Dividend Commitment and Outlook

Turners has declared a second-quarter dividend of 7 cents per share (cps) and reaffirmed its full-year dividend guidance of at least 27 cps. With a 6.0 cps dividend already paid for the first quarter, the company remains committed to delivering consistent returns to its shareholders.

CEO Insights and Strategic Focus

The group’s chief executive emphasized efforts to manage market challenges, particularly in the retail segment, while focusing on diversified revenue streams. Operational improvements and strategic cost management have played a critical role in sustaining profitability and strengthening Turners' market position.

Market Confidence

Investors have responded positively to the company’s performance, with shares reflecting stability at the time of writing. Turners' ability to navigate industry challenges while maintaining its dividend outlook signals confidence in its long-term strategy.

Turners Automotive Group remains optimistic about leveraging its diverse portfolio and operational efficiencies to sustain growth and shareholder value as it moves forward into the next fiscal period.

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