RPM Automotive Group Limited (ASX: $RPM) has released its results for the six months ended 31 December 2023, achieving a record half NPAT of $2.2 million, a 74% increase from the prior corresponding period. The company's revenue increased by 2.2% to $56.9 million, driven by a diversified product offering and increased cross-selling. Gross profit also saw a significant rise of 16.2% to $19.9 million, attributed to operational optimization and scale benefits. EBITDA surged by 23.4% to $5.4 million, reflecting the company's strong operating cash flow and renewed focus on working capital.
Over the past six months, we have shown our ability to harness our complementary divisions in more challenging trading conditions delivering a record half-year profit. Our focus has been on optimizing operational resources and consolidating our brand portfolio to establish a prominent national presence across the Australian automotive aftermarket sector. By enhancing our operational efficiencies, diversifying our product offering, and leveraging data and analytics to drive further cross-selling, we have delivered results that are in-line with guidance, with improved profitability and operating cash flows. Our acquisition and integration strategy remains pivotal to our next phase of growth, with Chapel Corner Tyres joining the RPM Group during the half, bringing us closer to becoming a household name by expanding our footprint both in Victoria and nationally.
RPM Automotive Group's H1 FY24 results showcased a 2.2% increase in revenue, a 16.2% rise in gross profit, and a substantial 74% surge in NPAT. The company's strategic focus on operational efficiencies, diversified product offerings, and cross-selling initiatives has yielded improved profitability and strong operating cash flows. The acquisition of Chapel Corner Tyres has further strengthened the company's position in the market, contributing to its national expansion. Looking ahead, RPM is well-positioned to navigate the dynamic landscape of the Australian automotive aftermarket, with initiatives such as the Tyre Recycling Strategy scheduled for rollout during 2H FY24. The company anticipates a stronger second half with group revenue expected to exceed $130 million and EBITDA projected to be in the range of $11 to $13 million in FY24.