myTukar parent Carro records best quarterly profits for Q1 FY2024; EBITDA over US$4 million in June 2023
myTukar parent company, Carro has recorded its highest EBITDA performance of over US$4 million (RM18.5 million) for the month of June, and has exceeded profitability targets for the first quarter of FY2024 despite a seasonally weaker financial quarter, given the festive holidays across the region in that period.
Gross profit margins for Carro in the Q1 FY2024 period increased to 14%, which is significantly ahead of the 9% achieved in Q1 FY2023. Its annualised run-rate EBITDA is now valued at over US$50 million (RM231.7 million), or more than 10 times of the value achieved in the entire FY2023.
“Our focus on fundamentals and our reluctance to enter into subsidy wars has enabled us to deliver four quarters of positive EBITDA. The strong execution of our digital ecosystem-led business model has made our business fundamentally stronger and more resilient, with sifgnificant ‘sticky’ recurring ancillary income streams. said Carro co-founder and CEO Aaron Tan.
“Ancillary attachment rates are going up as we focus more on our platform flywheel. The investment from Jardine C&C will help us drive even more earnings growth, particularly from aftersales. Our insure-tech partnerships with ZA Tech and MSIG are bearing fruits, with Gross Written Premium growing nearly 100% year-over-year,” Tan continued.
“Our first quarter EBITDA is already more than three times that of our entire last financial year, and we continue to be EBITDA positive in all core markets. Ancillaries continue to represent nearly 60% of our gross profit, so we’re under no pressure to sell more just to meet profitability targets,” said Carro chief financial officer Ernest Chew.
“Our marketplace business, which contributes nearly 85% of our revenues, has doubled gross profit margins over the last 12 months. Gross profitability for mobility grew nearly 200%, aftersales grew over 150%, while financing and insurance grew about 50% each year-over-year. We expect explosive earnings growth in the near term. We are one of the very few profitable tech start-ups, not just in Asia, but globally as well,” Chew added.
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