Auto retailer and financier Turners has posted record profits in both its auto retail and insurance divisions. The record growth reflects the strong demand for second-hand vehicles and the necessary policies for it following the North Island floods and Cyclone Gabrielle.
In its numbers for the period ending March compared to a year ago, the firm gained $32.9 million in net profit this year compared to $36.4 million last year (including gains in financial instruments) but overall revenue rose from $342 million to $389.6 million.
Underlying profit rose from $43.1 million to $45.5 million, while net profit from continuing operations posted $32.6 million compared to $31.5 million last year. In a report from RNZ, the company said that the results reflect the value of its diversification and de-risking strategy, but also cautioned of high interest rates that might cause its underlying profit target of $50 million to fall short.
Record earnings in both the auto retail and the insurance divisions helped offset the tighter net margins in the company’s financing division. Auto retail, in particular, saw a 28% increase in profitability compared to the 26% posted last year. However, in the credit management section, debt loads were increasing despite steady profits.
Turners boss Todd Hunter said that the past year was a tough one due to the dire economic conditions.
"While we are weathering tough economic conditions, we expect these headwinds to intensify before we are through the current inflation cycle," Hunter said. "However, we are well-positioned and will continue to look for organic growth opportunities to further our lead in what are uncertain and rapidly changing market conditions."
Elsewhere in NZ, recent findings from insurer AMI revealed that the Toyota Aqua was the most stolen car in the country in 2022, accounting for 11% of vehicle theft claims despite only making up 1.47% of Aotearoa’s car demographics.
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