ARB Corporation Limited Reports Steady Revenue Growth

ARB Corporation Limited ( (ARBFF) ) has released its Q2 earnings. Here is a breakdown of the information ARB Corporation Limited presented to its investors.

ARB Corporation Limited is a company that specializes in the design, manufacture, and distribution of motor vehicle accessories, operating primarily in the automotive aftermarket sector with a strong presence in both domestic and international markets.

In its latest earnings report for the half-year ended 31 December 2024, ARB Corporation Limited reported a sales revenue increase of 5.9%, reaching $361.7 million compared to the previous year. However, the profit before and after tax showed a slight decline of 0.7% and 0.6% respectively, reflecting a challenging market environment.

The company achieved growth in its Australian aftermarket sales despite a decline in new vehicle sales and inflationary pressures. Its exports, particularly to the US, saw a significant increase of 15.4%, driven by a robust performance in the sale of ARB branded accessories. Additionally, ARB made strategic investments by increasing its stake in its US associate, Off Road Warehouse, and acquiring the 4 Wheel Parts business, which expanded its retail network in the US.

Despite the slight profit decline, ARB maintains a healthy financial position with no debt and a strong cash balance. The company declared an interim dividend of 34.0 cents per share, fully franked, and continues to pursue growth opportunities through product development and expansion of distribution channels.

Looking ahead, ARB Corporation remains optimistic about its growth prospects, supported by a strong order book and new vehicle model releases. The company is focused on expanding its product range and store network, with a positive outlook for both domestic and export markets, particularly in the US.