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Highlights

  • CMO’s trading profit after tax fell 23.8% YoY to NZD 6.9 million in 1HFY25.
  • Total revenue reached NZD 507.88 million, up from NZD 494.8 million in 1HFY24.
  • New vehicle registrations in January 2025 were 14% lower YoY due to recessionary impacts.
  • CMO is prioritising cost reduction, efficiency, and used vehicle market expansion.
  • Interim dividend remains unchanged at 15 cents per share.

New Zealand-based Colonial Motor Company Limited (NZX: CMO) recently reported its trading results for the first half of the 2025 financial year (1HFY25). The results showed a trading profit after tax of NZD 6.9 million, a 23.8% decline compared to the previous year. Despite the downturn, the result was better than initially anticipated at the 2024 AGM, where market conditions appeared bleak.

A robust performance in December, driven by continued cost management strategies, helped end the six-month period on a more positive note.

In 1HFY25, CMO’s total revenue reached NZD 507.88 million, compared to NZD 494.8 million in 1HFY24.

Market Trends and Sector Performance

While the broader automotive market continues to experience a downturn, the agricultural sector has shown signs of recovery. An increased dairy payout, coupled with aggressive marketing by major brands, has injected some momentum into the tractor market.

New vehicle registrations in January 2025 were 14% lower than in the same period last year, indicating that market sentiment remains cautious.

Strategic Outlook

CMO remains committed to its long-term growth strategy by focusing on cost reduction, operational efficiency, and an enhanced approach to the used vehicle market. Additionally, the company continues to support its property investment and refurbishment initiatives, including the development of a new showroom at Fagan Motors in Masterton.

Despite the evolving and challenging market environment, CMO states that it is well-positioned to navigate industry shifts by leveraging the strength of its core franchise offerings and maintaining financial prudence. The company has also announced that its interim dividend will remain unchanged at 15 cents per share.

Share performance of CMO

CMO shares closed 1.72% higher at NZD 6.49 per share on 20 February 2025. Over the past year, CMO’s share price has dropped by nearly 20.85% and has increased by nearly 3.06% in a month.

52-week high of CMO is NZD 8.75, recorded on 8 April 2025 and 52-week low is NZD 6.25, recorded on 3 February 2025.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 20 February 2025. The reference data in this report has been partly sourced from EODHD/Others.