RPM Automotive Group Limited (ASX:RPM) Opens New Tyre Recycling Facility and Reports Trading Update
Tyre Recycling Facility
RPM Automotive Group Limited has launched its new tyre recycling plant, which is now fully operational. The Company anticipates significant earnings growth as production scales up.
Financial Performance
For the nine months FYTD, RPM reported sales revenue of $89.9 million, a 1.4% increase compared to the previous corresponding period. EBITDA rose by 8.2% to $9.5 million, driven by normalised trading conditions, improved buying, increased gross profit and EBITDA margins, and strong product demand.
Strategic Initiatives
The Company is focusing on expanding its National Fleet business, tyre division, and continuing the rollout of its tyre recycling program.
Future Outlook
RPM provided FY25 guidance with reported revenue expected to reach $120 million and EBITDA projected between $12 million and $13 million.
Executive Comments
CEO Clive Finkelstein stated, “For the nine months FYTD, we are comfortable with the stable revenue and improving EBITDA performance. I am pleased to report that our new tyre recycling plant is fully operational and early production output levels are ahead of expectations. Furthermore, we are confident that we will exceed original processing forecasts. This business unit offers an exciting growth avenue for RPM as we continue to move forward with the program implementation. I am also pleased to report that our traditional businesses continue to perform in line with forecast projections. We remain confident in the outlook for FY26, with continued focus on controlling operating expenses, improved margins and stable demand from our valued customers.”
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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