Consensus community valuation
Forecast Ex Div Date: 06/10/2023 (45 days away)
Not a good Report, Could consider.
Gross Profit Margin: i cannot find this.
ARB is well managed by the Browns
No Debt so guessing a short blip in the charts.
Return (inc div) 1yr: -7.32% 3yr: 8.97% pa 5yr: 8.97% pa
06-Feb-2023: Market-Update.PDF
The Board of ARB Corporation Limited (“ARB” or the “Company”) provides the following update to the market for the half year ended 31 December 2022 (“1H FY2023”).
Based on preliminary, unaudited management accounts for 1H FY2023, the Company achieved:
- Sales revenue of $340.9 million, down 5.1% compared with the previous corresponding period. Pleasingly, the second quarter of 1H FY2023 (“2Q FY2023”) was slightly ahead of the same period last year, an improvement from the 10.0% decline in the first quarter reported at the 2022 AGM. Sales to the Australian Aftermarket achieved 2.7% growth during 1H FY2023, whilst sales to export markets and original equipment manufacturers were consistent with expectations at the 2022 AGM, down 8.8% and 36.9% respectively.
- Profit before tax within the range of $64.0 million to $64.6 million, a decline of 29.7% compared with the previous corresponding period. The profit result reflects the lower sales and the inflationary impact on the Company’s cost base in particular. Pleasingly, inflationary pressure on the Company’s cost base moderated throughout 2Q FY2023 with freight and steel costs retreating towards more historical levels. Furthermore, recent sales price increases will improve margins and recruitment opportunities appear to be improving despite continuing to be challenging.
The Company maintains a positive short-term outlook based on its continuing strong customer order book, which is in line with order levels throughout 2022. ARB is focused on supporting export markets and pursuing various market opportunities whilst managing input costs and global supply chain pressures.
The Board believes ARB remains well positioned to achieve long term success through:
- New product development with a number of new and innovative products to be released in 2H FY2023;
- Expansion of the Australian Aftermarket through new and upgraded retail stores and stockists;
- Strategic partnerships with key Original Equipment customers in Australia and internationally;
- Increased distribution and manufacturing capacity to accommodate future growth; and
- A well-balanced management team with a blend of long-term ARB and experienced external executives.
ARB expects to release its results for 1H FY2023 and further commentary on Tuesday, 21 February 2023. The Company will host a webcast of the 1H FY2023 results at 10.00am on the same day, details for which will be provided via an ASX announcement one week prior.
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Slightly down on the prior period, with OEM sales well down (-36.9%) which was partially offset by increased sales to the Australian aftermarket (retail sales through ARB stores throughout Australia).
PBT around $64m, a -29.7% decline on the pcp. Lower sales and higher costs were to blame, but costs ("inflationary pressures") moderated through the December quarter. They mention that both freight and steel costs have declined towards more historic (normal) levels. They also call out that they've managed to push through sales price increases recently and recruiting, while still challenging, is becoming easier (improved recruitment opportunities). Their NPD pipeline remains strong and they plan to roll out further ARB retail stores and upgrade others.
There's more detail in there, but those are the main takeaways from my POV, as an ARB shareholder. The market appeared to like this update this morning, with the share price up to as high as $34.02 (they closed yesterday at $33.40), but by the end of the day, they were slightly down for the day (-8 cents at $33.32, or -0.24%), pretty much in line with the ASX200 Index, which was down -0.25%, so they performed in line with the market today really. The All Ords closed down -0.33% as smaller companies seemed to perform a little bit worse than the top 200 companies did.
I see no real issues with this update. It means that there will be no surprises on the 21st when they announce their official audited results. I regard ARB as having one of the best management teams of ANY ASX-listed company. They would certainly be in my top 5, probably in my top 3. I rate their management very highly, based entirely on their track record over the years, including their record of superb capital management - where they either reinvest profits back into the business at very good rates of return or else they return excess funds to their shareholders. It helps that Andrew Brown (their MD) and Roger Brown (their Chairman) together hold just over 6% of the company, worth $164.5 million (based on today's closing share price), so they think like business owners, not just business managers. Plenty of skin in the game.
ARB 4x4 Accessories - Your partner in adventure
Disclosure: I hold ARB shares both here and in a number of my real life portfolios, including my SMSF.
28-Oct-2022: ARB Corporation 2022 AGM Presentation
See Also: ARB Corporation 2022 Annual Report
Like many companies at the moment, ARB have been sold down on their AGM Presentation today, finishing the day down $1 (or -3.57%) at $26.98. That's a fair way below their $50+/share highs during the second half of last year. Their share price has almost halved since then.
As usual, ARB's management have given conservative guidance, with continued growth forecast, albeit more weighted to the second half. I'm a holder of ARB shares, both IRL and here on SM, and they're one of the highest quality companies on the ASX in my opinion, with some of the best management also. The company's share price does tend to trend well, as that graph shows, so I'm planning to top up my positions once they eventually stop falling and then establish another uptrend.
ARB, which I hold, have reported this morning, and it's a good one. ARB achieved a net profit after tax of $112.9 million for the year ended 30 June 2021, up 97.0% on the reported net profit after tax of $57.3 million in the previous year. Sales for the year were $623.1 million, an increase of 33.9% over the previous year. Profit before tax of $150.0 million for the year ended 30 June 2021 represents an increase of 92.1% compared with the year to 30 June 2020.
The Company intends to pay a final fully franked dividend of 39.0 cents per share. This brings total dividends for the year to 68.0 cents per share fully franked, an increase of 72.2% compared with last year.
Covid-19 has clearly provided ARB with more tailwinds than headwinds, however I still rate this as an outstanding result, and I'm a happy ARB shareholder in 2 of my RL PFs (portfolios), and they're also in my SM PF.
