MOTUS was benefiting from the recovery of the new vehicle sales market and headline earnings per share were likely to increase by between 45and 55 percent to between 763 and 815 cents per share in the six months to December 31, 2021.
The share price of South Africa’s biggest automotive group, with interests in the UK and Australia, traded 0.2 percent higher to R110.21 on the JSE yesterday morning – the price has steadily traded higher by 80 percent over a 12-month period.
The group said in a trading update yesterday that operating profit was expected to be between R2.1 billion and R2.2bn, representing a 20 to 26 percent increase compared with the same six-month period a year before.
The Automotive Business Council for South Africa reported annual industry sales for new vehicle sales at 464 122 vehicles for the year to December 31, compared with 380 206 vehicles a year before, representing a 22 percent increase for the calendar year.
Motus’s management projects annual new vehicle sales to be between 470 000 and 490 000 vehicles for the financial year to June 30, 2022, compared with 445 319 vehicles in the comparative period.
They said market share gains were being supported by an expansion of its vehicle model range, particularly in the entry-level and small to medium SUV categories, coupled with new model launches.
In the UK, the Society of Motor Manufacturers and Traders reported annual new vehicle sales (excluding heavy commercial vehicles) to be 2 008 549 units for the year to December 31, compared with 1 930 478 vehicles the year before.
Light commercial vehicle volumes were strong, driven by a rise in home deliveries, and had increased 21 percent to 355 380 vehicles for the calendar year.
In Australia, the Federal Chamber of Automotive Industries reported annual new vehicle sales rising 14.5 percent to 1 049 831 vehicles for the 12 months.
Motus said demand for pre-owned vehicles continued to be strong on the back of the shortage of new vehicles across all geographies where it operates. The industry was experiencing a short supply of pre-owned vehicles from car rental companies, but Motus had identified alternative sources of such vehicles.
Global supply chain disruptions continue to impact the delivery of vehicles, panels and parts, with substantial increases in freight and logistics costs.
“Our four importer brands and the 21 non-owned brands were fortunate in that they have an extensive model range which enables them to focus on available stock,” the group said.
Inventory supplies were anticipated to normalise during the first quarter of the 2023 financial year, management said.
During December 2021, the car rental fleet was increased to 17 200 vehicles and by June 2022 it was estimated to be around 15 500 vehicles. The car rental business was operating at utilisation levels in excess of 70 percent. Group debt to equity levels remained below targeted levels and was projected to end at below 35 percent for the six-month period ended December 31, 2021.
edward.west@inl.co.za
BUSINESS REPORT ONLINE