In This Article:
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Net Revenue Growth: Increased by 6.6%.
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NPAT: Reduced by 9.8% versus PCP.
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Corporate Deliveries Growth: Increased by 12%.
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Novated Order Growth: Increased by 15.4%.
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Novated Delivery Growth: Increased by 7.5%.
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Lite Fleet Reduction: Decreased by 5.6%.
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Net Mobility Services Revenue Growth: Increased by 20%.
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Net Additional Products and Services Income Growth: Increased by 12.3%.
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Finance Commission Growth: Increased by 25.7%.
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Average Disposal Profit per Vehicle: Reduced by 27.2% versus PCP.
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Operating Expenses Growth: Increased by 11.7%.
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Cash Generation: Strong at 105.5%.
Release Date: February 17, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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SG Fleet Group Ltd (ASX:SGF) reported continued growth in delivery volumes, driving a 6.6% increase in net revenue.
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The company successfully maintained strong delivery numbers in Australia, New Zealand, and the UK, with new business opportunities emerging.
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SG Fleet Group Ltd's innovation drive is yielding positive results, boosting revenue through new mobility products.
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The novated channel saw strong interest, with 70% of new orders being low-emission vehicles, supporting growth in this segment.
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Customer satisfaction measures improved, aided by faster vehicle delivery and reduced order cancellations.
Negative Points
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Used vehicle values continued to soften, impacting the average end-of-lease disposal profit.
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Operating expenses increased by 11.7% due to higher project spend and headcount related to the LeasePlan migration.
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Net rental and finance income decreased by 19.2% due to higher interest costs and fewer vehicles in extensions.
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NPAT reduced by 9.8% compared to the previous corresponding period, partly due to higher interest costs.
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The lite fleet reduced by 5.6% due to strategic decisions to exit certain low-margin customers and convert unfunded to funded customers.
Q & A Highlights
Q: Did SG Fleet experience a slowdown in vehicle orders during the half-year, similar to industry trends? A: Robert Blau, CEO, stated that SG Fleet did not see a slowdown in orders. The company benefited from a significant number of customer wins over the past periods, leading to a larger pool to attract orders from. There was strong demand for plug-in hybrids before incentives ended and continued interest in electric and hybrid vehicles.
Q: Is the novated leasing market continuing to grow, and how does low-emission vehicle demand impact yields? A: Robert Blau confirmed that the novated leasing market is growing as more corporates are attracted to the product. Low-emission vehicles, being more expensive, drive higher yields for SG Fleet.