Highlights

  • 2 Cheap Cars reported approximately NZ$0.6 million NPAT in each of March, April, and May 2026.
  • Improved vehicle margins, stronger procurement conditions, and disciplined cost control supported earnings growth.
  • The company has entered FY27 with positive momentum but has not issued full-year earnings guidance.

Overview

2 Cheap Cars Limited (NZX:2CC) has reported a strong start to FY27, building on the improved trading momentum seen during the second half of FY26. The company generated approximately NZ$0.6 million in net profit after tax during March, April, and May 2026, reflecting stronger vehicle margins, effective inventory management, and robust finance and insurance performance. While management remains encouraged by recent results, the Board cautioned that the current performance covers only a short period and may not necessarily indicate earnings for the remainder of FY27.

What Is Driving 2 Cheap Cars' Improved Financial Performance?

The company's recent earnings growth has been supported by stronger vehicle margins, improved procurement opportunities, and disciplined operational execution. Management has focused on maintaining high-quality inventory while controlling operating expenses. In addition, finance and insurance products continue to deliver strong penetration rates, contributing positively to profitability. These initiatives helped strengthen trading momentum through the second half of FY26 and have continued into the early months of FY27.

Why Is the Company Remaining Cautious Despite Strong Results?

Although recent trading has been encouraging, the Board believes it is too early to project full-year FY27 performance. Market conditions remain uncertain, and management expects the operating environment to remain unpredictable. As a result, the company has chosen not to provide earnings guidance at this stage. Instead, its focus remains on protecting margins, managing inventory efficiently, and maintaining disciplined execution across all business operations.