Latest news with #operatingprofit
Yahoo
2 days ago
- Automotive
- Yahoo
Auto Trader Group PLC (ATDRF) Full Year 2025 Earnings Call Highlights: Strong Revenue and ...
Group Revenue Growth: 5% increase. Operating Profit Growth: 8% increase. Basic EPS Growth: 12% increase. Core Auto Trader Revenue Growth: 7% increase. Retailer Revenue Growth: 7% increase. Average Revenue Per Retailer (ARPR): 5% increase to GBP 2,854. Cash Returned to Shareholders: GBP 275.7 million through share buybacks and dividends. Final Dividend: 7.1p per share, total dividends 10.6p per share, up 10%. Operating Profit Margin: Group margin at 63%, Auto Trader margin at 70%. Cash Generated from Operations: 5% increase. Average Number of Retailer Forecourts: Up 2% to 14,013. Live Car Stock: Up 1% to 449,000. Autorama Revenue: GBP 36.3 million. Autorama Operating Loss: GBP 4.3 million. Net Profit Before Tax: GBP 375.7 million, 9% increase. Effective Tax Rate: 25%. Net Bank Debt: Reduced to nil. Warning! GuruFocus has detected 2 Warning Sign with ATDRF. Release Date: May 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Auto Trader Group PLC (ATDRF) reported a 5% increase in group revenue, with Auto Trader revenue specifically growing by 7%. Operating profit grew by 8%, demonstrating strong operating leverage and effective capital policy application. The company successfully launched its Co-Driver AI product suite, which has seen strong engagement from both retailers and consumers. Auto Trader's platform strategy is robust, with over 1 billion calls to data services, benefiting more than 90% of retailer customers. The Deal Builder product saw an 82% increase in customer numbers, significantly boosting the number of deals generated. The acceleration in the speed of vehicle sales negatively impacted revenue growth, which could have been higher without this factor. Used car prices fell during the year, affecting retailer profitability despite strong consumer demand. The digital services tax impacted Auto Trader's operating profit margin, which contracted slightly. Revenue from Manufacturer and Agency customers decreased by 8% year-on-year. Autorama, a segment of the business, reported an operating loss of GBP 4.3 million, although this was a reduction from the previous year. Q: With the April '26 pricing event approaching, how will Auto Trader handle accelerated stock turn, and what products will be bundled in the event? A: Nathan Coe, CEO, explained that while the event is some time away, they consider retailer profitability and stock turn when planning. They are not planning to change their business model but may consider pricing adjustments if stock turn remains fast. The event will likely focus on Deal Builder, with no major additional products, to ensure effective implementation and engagement. Q: Can you provide more details on the FY26 stock ARPR guidance and the medium-term Deal Builder monetization plans? A: Jamie Warner, CFO, stated that the stock offer conversion is expected to align with historical rates, and they anticipate a small negative impact on stock lever. Catherine Faiers, COO, noted that Deal Builder will be a baseline version initially, with potential for future monetization through additional features like finance products. Q: What are the expectations for retailer gross margins, and how does Autorama fit into the strategy with new private sales growth? A: Catherine Faiers, COO, mentioned that retailer gross margins have been under pressure due to narrowing trade-retail price gaps and softer finance penetration. Nathan Coe, CEO, added that Autorama's focus is on leveraging the Auto Trader platform for growth, with plans to reduce reliance on balance sheet transactions. Q: How does Auto Trader view competitive threats, and what differentiates its position in the market? A: Catherine Faiers, COO, emphasized that Auto Trader's brand, consumer relationships, and data depth are key differentiators. They focus on maintaining strong marketplace foundations and leveraging proprietary data to enhance consumer and retailer experiences, which positions them well against both traditional and emerging competitors. Q: With Deal Builder becoming part of core packages, will there be additional marketing efforts, and are there plans for standalone AI products? A: Catherine Faiers, COO, indicated that while they won't significantly increase marketing spend, they will enhance Deal Builder's prominence on the platform. Regarding AI, there are opportunities to develop standalone products within their existing streams, potentially targeting specific customer segments for validation and monetization. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
2 days ago
- Automotive
- Yahoo
Auto Trader Group PLC (ATDRF) Full Year 2025 Earnings Call Highlights: Strong Revenue and ...
Group Revenue Growth: 5% increase. Operating Profit Growth: 8% increase. Basic EPS Growth: 12% increase. Core Auto Trader Revenue Growth: 7% increase. Retailer Revenue Growth: 7% increase. Average Revenue Per Retailer (ARPR): 5% increase to GBP 2,854. Cash Returned to Shareholders: GBP 275.7 million through share buybacks and dividends. Final Dividend: 7.1p per share, total dividends 10.6p per share, up 10%. Operating Profit Margin: Group margin at 63%, Auto Trader margin at 70%. Cash Generated from Operations: 5% increase. Average Number of Retailer Forecourts: Up 2% to 14,013. Live Car Stock: Up 1% to 449,000. Autorama Revenue: GBP 36.3 million. Autorama Operating Loss: GBP 4.3 million. Net Profit Before Tax: GBP 375.7 million, 9% increase. Effective Tax Rate: 25%. Net Bank Debt: Reduced to nil. Warning! GuruFocus has detected 2 Warning Sign with ATDRF. Release Date: May 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Auto Trader Group PLC (ATDRF) reported a 5% increase in group revenue, with Auto Trader revenue specifically growing by 7%. Operating profit grew by 8%, demonstrating strong operating leverage and effective capital policy application. The company successfully launched its Co-Driver AI product suite, which has seen strong engagement from both retailers and consumers. Auto Trader's platform strategy is robust, with over 1 billion calls to data services, benefiting more than 90% of retailer customers. The Deal Builder product saw an 82% increase in customer numbers, significantly boosting the number of deals generated. The acceleration in the speed of vehicle sales negatively impacted revenue growth, which could have been higher without this factor. Used car prices fell during the year, affecting retailer profitability despite strong consumer demand. The digital services tax impacted Auto Trader's operating profit margin, which contracted slightly. Revenue from Manufacturer and Agency customers decreased by 8% year-on-year. Autorama, a segment of the business, reported an operating loss of GBP 4.3 million, although this was a reduction from the previous year. Q: With the April '26 pricing event approaching, how will Auto Trader handle accelerated stock turn, and what products will be bundled in the event? A: Nathan Coe, CEO, explained that while the event is some time away, they consider retailer profitability and stock turn when planning. They are not planning to change their business model but may consider pricing adjustments if stock turn remains fast. The event will likely focus on Deal Builder, with no major additional products, to ensure effective implementation and engagement. Q: Can you provide more details on the FY26 stock ARPR guidance and the medium-term Deal Builder monetization plans? A: Jamie Warner, CFO, stated that the stock offer conversion is expected to align with historical rates, and they anticipate a small negative impact on stock lever. Catherine Faiers, COO, noted that Deal Builder will be a baseline version initially, with potential for future monetization through additional features like finance products. Q: What are the expectations for retailer gross margins, and how does Autorama fit into the strategy with new private sales growth? A: Catherine Faiers, COO, mentioned that retailer gross margins have been under pressure due to narrowing trade-retail price gaps and softer finance penetration. Nathan Coe, CEO, added that Autorama's focus is on leveraging the Auto Trader platform for growth, with plans to reduce reliance on balance sheet transactions. Q: How does Auto Trader view competitive threats, and what differentiates its position in the market? A: Catherine Faiers, COO, emphasized that Auto Trader's brand, consumer relationships, and data depth are key differentiators. They focus on maintaining strong marketplace foundations and leveraging proprietary data to enhance consumer and retailer experiences, which positions them well against both traditional and emerging competitors. Q: With Deal Builder becoming part of core packages, will there be additional marketing efforts, and are there plans for standalone AI products? A: Catherine Faiers, COO, indicated that while they won't significantly increase marketing spend, they will enhance Deal Builder's prominence on the platform. Regarding AI, there are opportunities to develop standalone products within their existing streams, potentially targeting specific customer segments for validation and monetization. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
3 days ago
- Business
- Yahoo
Lewis Group Ltd (JSE:LEW) Full Year 2025 Earnings Call Highlights: Strong Revenue Growth and ...
Release Date: May 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Revenue increased by 13.5% with merchandise sales growing by 9.2%. Operating profit expanded by 66.9%, with an operating profit margin increase of 790 basis points to 22.7%. EPS increased by more than 80%, and a final dividend of $0.50 was declared, bringing the total dividend for the year to $0.80. The debtor's book displayed strong growth of 14.5%, with a record high satisfactory paying percentage of 83.5%. The company successfully opened 33 new stores and revamped 170 stores, enhancing its retail footprint. Operating costs exceeded the target range set at the beginning of the year. The retail landscape remains challenging with no expected economic recovery or growth to support sales. There is increased competition from companies like Pepcore entering the furniture business. Borrowings increased by 279 million, although still within the board's risk appetite. The share price growth did not keep pace with the growth in net asset value per share. Warning! GuruFocus has detected 6 Warning Sign with JSE:LEW. Q: How sustainable are the current gross profit margins, and how sensitive are they to changes in shipping rates? A: The upper end of our gross profit target range was set at 42%, which we exceeded. This was supported by strategic decisions to bring merchandise lines in earlier, allowing us to price accordingly and pass some cost pressures onto consumers. Our target range for this year remains at 40-42%. We aim to protect the gains made and continue to grow profits, maintaining an ROE above 15%. It's about finding the right balance to gain market share profitably. (Respondent: Unidentified_1) Q: Which brands and provinces offer the biggest opportunities for store growth? A: At least 50% of our store growth will come from the specialty segment, specifically specialist bed set stores. We've increased our Real Bed store base from 16 to 26 stores. We are focused on finding quality retail space quickly to expand. The remainder of the stores will be opened under traditional brands, with opportunities across South Africa and BLNE countries. (Respondent: Unidentified_1) Q: How do you view the competitive landscape, especially with Pepcore entering the furniture business? A: We are closely monitoring Pepcore's integration of 400 Shoprite stores. We remain satisfied with our market positioning and believe the addition of specialist bed stores will attract more cash customers. We continue to monitor competitors closely but are confident in our strategy and market position. (Respondent: Unidentified_1) Q: Given your 2026 targets, do you expect to grow earnings this year? A: We are budgeting to grow earnings, albeit from a high base. Based on the first two months of this financial year, we believe we have the offering and business model to continue growing earnings, though not at the same rate as this year. We are not planning to go backwards. (Respondent: Unidentified_1) Q: What is your current market share in South Africa, and how do you plan to grow it? A: It's difficult to quantify market share due to limited public information. However, we are satisfied with our growth, particularly in credit customers. Our credit contribution has shown significant market share gains, and extending credit remains the backbone of our business. (Respondent: Unidentified_1) Q: Are you seeing any impact on paying customers due to weakening jobs data in Q1 2025? A: Currently, there is no strain in the debtor's book. We are satisfied with sales and collection performance for April and May. We are monitoring sectors like the motor and agricultural industries closely, but there is no additional strain on our customer base at this time. (Respondent: Unidentified_1) Q: Do you anticipate cash generation to remain subdued due to further investment in the debtor's book? A: No, we expect the book to generate strong cash flow going forward. We are comfortable that we will not exceed our borrowing ceiling next year. (Respondent: Unidentified_3) Q: What are your plans for store expansion and the impact on operating costs? A: We plan to open a minimum of 40 new stores, adding roughly 4% to the store base. We aim to open these stores early in the financial year. There will be some pressure on operating costs due to store expansion, but we are focused on maintaining expense controls. (Respondent: Unidentified_1) For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
4 days ago
- Business
- Yahoo
Pure Storage Inc (PSTG) Q1 2026 Earnings Call Highlights: Strong Revenue Growth and Strategic ...
Revenue Growth: 12% increase in Q1 revenue. Operating Profit: $83 million with an operating margin of 10.6%. Storage-as-a-Service TCV Sales: Increased 70% to $95 million. Subscription Services Revenue: $406 million, up 17%. Annual Recurring Revenue (ARR): Grew 18% to $1.7 billion. Total Remaining Performance Obligations (RPO): Increased 17% to $2.7 billion. US Revenue: $531 million, a 9% increase. International Revenue: $248 million, a 21% increase year over year. Gross Margin: Improved to 70.9%, with subscription services margin at 77.2%. Product Margin: Rose 1.1 points sequentially to 64%. Operating Cash Flow: $284 million. Capital Investments: $72 million. Share Repurchases: $120 million returned through 2.5 million share repurchases. Q2 Revenue Guidance: Expected to be $845 million, a 10.6% year-over-year increase. Q2 Operating Profit Guidance: Expected to be $125 million with an operating margin of 14.8%. Warning! GuruFocus has detected 3 Warning Sign with PSTG. Release Date: May 28, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Pure Storage Inc (NYSE:PSTG) delivered double-digit revenue growth of 12% in Q1, with strong operating profit and margin performance. The introduction of Fusion 2.0 has been well-received, with nearly 100 customers using or testing the software to manage their data infrastructure. The launch of FlashBlade//EXA positions Pure Storage Inc (NYSE:PSTG) as a leader in high-performance storage for AI and high-performance computing environments. Strong growth in Storage-as-a-Service solutions, with Q1 TCV sales jumping 70% to $95 million, driven by large Evergreen//One deals. Partnerships with major companies like Nutanix and Microsoft enhance Pure Storage Inc (NYSE:PSTG)'s virtualization solutions, providing modern, scalable environments for high-demand workloads. The macroeconomic environment remains uncertain, with potential impacts from tariffs and economic conditions in the second half of the year. The departure of CFO Kevan Krysler introduces potential transitional challenges as the company searches for a new financial leader. Despite strong performance, there is less visibility and predictability for the second half of the fiscal year due to market dynamics. The hyperscale collaboration with Meta is progressing slowly, with a long design cycle impacting the timeline for potential revenue recognition. Subscription margins could face pressure if higher tariff costs materialize, although the company plans to absorb these costs efficiently. Q: Can you provide an update on the hyperscale opportunity with Meta and how it is evolving from pilot to production? A: Charles Giancarlo, CEO: The process with Meta is progressing as expected, aligning with their 1.5 to 2-year design cycle for their next-generation data center. We are on track to deliver the anticipated 1 to 2 exabytes in the second half of the year. Discussions with other hyperscalers are also progressing steadily, though it's hard to predict when they will result in a fully validated design win. Q: How should we think about the opportunity and financial implications of the newly announced FlashBlade//EXA offering? A: Charles Giancarlo, CEO: FlashBlade//EXA targets niche markets like government sovereign clouds and large-scale GPU clusters. While not as large as the entire enterprise market, it can still be substantial. The margins are expected to be at or above our standard company margins. Rob Lee, CTO, added that EXA builds on the success of FlashBlade//S, targeting the next level of scale in AI environments. Q: Are you seeing any changes in buyer behavior due to macroeconomic uncertainties, such as a shift towards less expensive options or increased adoption of Evergreen//One? A: Charles Giancarlo, CEO: We haven't observed significant changes in customer sentiment or substantial pull-ins in Q1. While the second half of the year is less predictable due to tariffs and economic conditions, the first half has not shown significant shifts. Kevan Krysler, CFO, noted that Evergreen//One could benefit over time as it absorbs tariff costs without increasing subscription rates. Q: How does the revenue recognition work for the 1 to 2 exabytes from Meta in the second half? A: Kevan Krysler, CFO: There will be some de minimis revenue contribution from Meta in the second half, which has been considered in our annual guidance. The revenue model will likely be a licensing fee, not reflecting the full gross value. Q: Can you clarify the impact of potential higher tariff costs on subscription margins? A: Kevan Krysler, CFO: We are efficient in leveraging technology and managing tariffs due to our agile manufacturing and supply chain. We do not foresee a significant burden on our subscription gross margins from potential tariff costs. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Bloomberg
21-05-2025
- Business
- Bloomberg
Marks & Spencer Says Cyber Attack to Cost Business £300 Million
Marks & Spencer Group Plc is facing a £300 million ($403 million) hit to operating profit this fiscal year from a cyber attack it suffered a month ago. The British retailer said it would attempt to mitigate the impact with cost savings and insurance payments. Online clothing and home orders, which account for more than £3 million of sales a day and have been suspended for more than three weeks, will be disrupted into July, it said Wednesday.
