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ARB Corp Sales Up, Profit Margins Decline

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4x4 accessories retailer announces special dividend despite profit dip.

ARB Corporation has announced its financial results for the 12 months ending June 30, reporting sales revenue of $729.9 million, a 5.3 per cent increase compared to the prior year. Despite the revenue growth, the company’s profit experienced a decline, falling 5 per cent to $97.5 million, or $96.2 million excluding one-off adjustments. ARB Corporation specialises in the design, manufacture, distribution, and sale of 4×4 accessories. The company’s products are widely used by off-road enthusiasts and the commercial vehicle market.

Basic earnings per share (EPS) amounted to 116.2¢, down 8.3 per cent from FY24. This decrease reflects lower profits despite the steady increase in revenue. ARB Corp has declared a special dividend of 50¢ per share, in addition to a final dividend of 35¢ per share.

This brings the total fully franked dividends for FY25 to 119¢ per share, representing a 72.5 per cent increase compared to the prior year. The substantial rise in total dividends, despite the profit decline, may be viewed positively by investors seeking income. The company has not released further details regarding its outlook for the next financial year.

ARB’s performance reflects a complex interplay of revenue growth and profit margin pressures in the current economic environment. Investors will be closely watching how the company navigates these challenges in the coming periods.

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