Motus, which owns a network of vehicle dealerships in SA, the UK and Australia, reported on Wednesday that its profit rose just 1% in the year ended June, partly reflecting the strain consumers were taking because of the cost-of-living crisis.
The group’s passenger and commercial businesses sold 126,826 new vehicles across all three geographies during the reporting period vs 135,564 sold in the prior comparable period. Pre-owned vehicles sold dipped to 85,752 from 89,753.
As an exclusive importer and distributor of brands like Hyundai and Kia, Motus was also subject to the vagaries of a weaker rand, which inflated the cost of imported goods.
However, Motus has in recent years been trying to diversify its income away from the highly cyclical vehicle sales, which still make up the lion’s share of its business.
It has sharpened its focus on growing its aftermarket business that sells car parts to owners whose vehicles fall outside warranty.
Nearly a year ago, it acquired UK-based Motor Parts Direct in a deal that it said was aligned with its international growth strategy for its aftermarket segment.
Its headline earnings per share (HEPS), the main profit measure that strips out exceptional times, were steady at R20.46 vs R20.25 in the matching period in 2022.
SA retail revenue and operating profit rose 8% and 17%, respectively, boosted by selling price increases, new car model releases and improved vehicle availability, Motus said in a statement.
Vehicle rental revenue and operating profit rose 26% and 12%, respectively, lifted partly by improved business travel after the pandemic.
In the UK, revenue and operating profit rose 21% and 17%, boosted by commercial vehicle sales. However, the company’s passenger division was affected by original equipment manufacturers’ (OEM’s) supply constraints, logistic issues and reduced consumer disposable income.
In Australia, revenue and operating profit rose 21% and 12% apiece.
The aftermarket parts segment increased revenue and operating profit by 52% and 62%, respectively.
Motus declared a final dividend of R4.35 per share, bringing the total R7.10, matching last year’s payout.
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