The revenue for the quarter was $15.24 million compared to the previous corresponding quarter’s $10.26 million while gross profit was $3.82 million up 33% from $2.87 million in the June quarter of 2020.
This revenue growth was underpinned by continued demand for commercial tyres, with the company’s Wheels and Tyres Division reaching a new quarterly record of $7.46 million, up 41.8% on the previous corresponding period.
In addition, the Repairs and Roadside Division made a strong contribution of $5.15 million to quarterly revenue, due to strong retail numbers being reported, with this being 82.5% higher.
RPM’s Motorsport Division was also up 42.5% to $1.72 million, while the Performance and Accessories Division was flat at $910,000.
As well as registering record gross profit, the unaudited Pro Forma EBITDA (earnings before interest, tax, depreciation and amortisation) was $1.78 million.
RPM CEO Clive Finkelstein said: “This quarter has again demonstrated that our diversification strategy of complementary brands across the transport and automotive aftermarket sectors provides resilience to the RPM Automotive Group and the ability to thrive during periods of market volatility brought on by the COVID-19 pandemic.
“Our Wheels and Tyres division is experiencing significant growth, driven by increased commercial tyres orders, as essential services such as transport, agriculture and mining continue to surge.
“While passenger tyre retail sales were slightly down due to the decrease of passenger cars on the road because of COVID-19 lockdowns in various capital cities, our passenger tyre wholesale revenue significantly increased.
“Our acquisition and diversification strategy provides a buffer from current volatile retail operating conditions.”
The growth strategy was supported by the successful acquisition and integration of Traralgon Tyre Service and RPM Autoparts.
Finkelstein said the company’s growing national footprint was another significant contributor to the group’s strong results.
“With all recent acquisitions now finalised and operating under the RPM umbrella, our national presence will only become stronger as we continue the rollout our growth strategy.
“With operations throughout Australia, we are well-positioned to grow RPM into a leading Australian business operating a diversity of brands across the transport and automotive aftermarket sectors.”
The company registered record gross profit, up 33% to $3.82 million.
Fuelled by solid trading
RPM’s record increase in revenue in the Wheels and Tyres Division is fuelled by solid trading in commercial, industrial and agricultural tyres as a result of the company’s links to essential services and the heavy transport and logistics sectors.
The acquisition of RPM Autoparts, stock investments, increase in demand and business integration and leadership practices are other key developments that have reflected positively on the growth.
In addition, the Repairs and Roadside Division’s strong increase is mainly due to the scaling of operations through integration of new acquisitions, which have been immediately revenue accretive as well as an under-performance of this division in the corresponding period last year due to the direct impacts of COVID-19.
Furthermore, the Motorsport Division is also driven by increased turnover supported by good inventory levels as well as the 2021 Australian motorsport season enjoying fewer disruptions than 2020.
Strategy proving successful
Finkelstein added: “The record fourth quarter that reflected strong revenue and earnings growth, as well as the inclusion of previous acquisitions, has us on track to deliver strong results in FY22.
“The successful integration of our recent acquisitions is allowing us to more effectively cross-sell products and cross-pollinate customers over an increasing geographic retail footprint and wholesale distribution network.
“With RPM’s growth strategy proving successful, we will continue to explore opportunities to optimise our wholesale, warehouse and distribution capability to better service all our retail outlets.”
- Ephrems Joseph