Turners Automotive Group Posts 17% Net Profit Rise and 14% Dividend Boost in FY25
Turners Automotive Group has reported a record FY25 performance, with net profit after tax rising 17% to $38.6 million and dividends increasing 14% to 29.0 cents per share, showcasing resilience amid challenging economic conditions.
- Net profit after tax up 17% to $38.6 million
- Dividend per share increased 14% to 29.0 cents
- Revenue slightly down 1% to $414.2 million due to lower Auto Retail sales
- Strong growth in Finance, Insurance, and Credit Management segments
- Expansion of branch network including new Christchurch sites
Record Results Amid Economic Headwinds
Turners Automotive Group has capped off a decade of growth with a record FY25 result, demonstrating remarkable resilience in a tough economic environment. Despite a slight 1% dip in total revenue to $414.2 million, the company achieved a 17% increase in net profit after tax, reaching $38.6 million. This performance was underpinned by a diversified business model that offset softer Auto Retail revenues with strong gains in Finance, Insurance, and Credit Management divisions.
The company’s dividend payout also reflected this robust performance, with a 14% increase to 29.0 cents per share, continuing a consistent track record of dividend growth over the past 11 years. Turners’ ability to sustain and grow dividends highlights its operational strength and shareholder focus.
Segment Highlights and Strategic Growth
The Auto Retail segment faced challenges in the first half of FY25 due to consumer sentiment and vehicle price pressures but rebounded strongly in the second half. Operational efficiencies and a disciplined approach to stock management helped improve margins and inventory turnover. The company also expanded its physical footprint with new branches in Christchurch and other locations, positioning itself for future growth.
Finance saw solid loan book growth and an expanding net interest margin, benefiting from disciplined credit quality and a shift in interest rates. The Insurance division grew premiums and improved risk pricing, aided by a new digital platform and strategic partnerships. Credit Management capitalized on a worsening economic backdrop, onboarding a large corporate client and increasing debt collections despite extended repayment arrangements.
Culture and Operational Excellence
Turners’ strong corporate culture remains a key competitive advantage. Employee engagement scores are among the highest globally for consumer businesses, with over half of employees participating in the company’s share scheme. This engagement supports operational agility and customer service excellence, critical in a market facing regulatory changes and shifting consumer preferences.
Looking Ahead: Confident Growth and Managed Risks
Looking forward to FY26, Turners anticipates continued profit growth driven by economic recovery, further branch expansion, and ongoing diversification of earnings. The company remains vigilant on key risks such as funding costs, recessionary pressures, and regulatory impacts on used car imports. However, its diversified model, strong balance sheet, and strategic initiatives provide a solid foundation to navigate these challenges.
Turners’ FY25 results not only reflect a successful year but also set the stage for sustained growth as it leverages its market position and operational strengths in a recovering economy.
Bottom Line?
Turners’ FY25 record results underscore its resilience and set a confident tone for growth amid evolving market dynamics.
Questions in the middle?
- How will Turners manage the slower-than-expected transition from wholesale to retail sales?
- What impact will ongoing regulatory changes on used car imports have on Turners’ Auto Retail segment?
- Can Turners sustain its credit quality and net interest margin amid potential economic volatility?
