Combined Motor Holdings pleased with earnings growth as new car sales fall
Combined Motor Holdings (CMH), whose brands include First Car Rental, said on Tuesday it was pleased with marginal revenue growth in its six-months to end August, given that SA consumers are increasingly avoiding getting new vehicles.
Revenue rose 2.6% to R5.7bn, the company said, with its focus on used vehicles resulting in sales volume growth of 1.8%.
Headline earnings per share rose 2% to 120.9c.
“Weak growth in the embattled economy resulted in national sales of new passenger and light commercial vehicles falling 3.5%, with a continued trend towards lower-priced models,” the company said.
“Only the proliferation of sales incentive schemes and subsidised finance rates has kept this level from further decline.”
The company said its decline in new vehicle sales during the period was only 2%.
CMH’s share price was down 1.67% to R20.55 as of 11.30am on Tuesday, having fallen 7.81% so far in 2019.