RPM Automotive Group Ltd (ASX:RPM) delivered strong revenue growth during the quarter ending June 30, 2022, clocking $26.5 million in revenue, up 74% compared to the corresponding quarter in 2021 and 23% on the March quarter of 2022.
During the quarter, the company also recorded gross profit of $8.4 million, up 121% compared to the previous corresponding quarter of 2021.
In annual revenue, the company hit $83.3 million last financial year, up 84% compared to FY21 revenue.
Furthermore, RPM achieved organic revenue growth greater than 18% over the past financial year, driven by strong network effects in the vertically integrated offering, across both the wholesale and retail divisions through an expanded national footprint and increased product range.
Vertically integrated business model
RPM CEO Clive Finkelstein said: “We were very pleased with the organic growth rate of over 18% in the past year, which reflects the strength of our vertically integrated business model to increase our national footprint, expand our product range to drive top-line growth and operating synergies across our wholesale and retail network
“In Q4, we were adversely impacted by one-off flood-related expenses, but we are very well positioned for continued strong growth in FY23.
“RPM enters FY23 with an annualised revenue run rate of over $120 million and increased operating leverage to underpin sustainable earnings growth moving forward.”
FY2022 EBITDA up 67%
During the quarter, EBITDA was $2.2 million, up from $1.8 million in Q4 FY21, reflecting increased investment in growth through new branch openings as well as one-off costs associated with flood-related clean-up
Meanwhile, the EBITDA for the past financial year was up 67% to $7.5 million.
New acquisitions
During the quarter, RPM acquired Victoria Wide Tyre Service and ACT Total Tyres.
Their integration is on track and recent acquisitions, including Safety Dave, are exceeding budgets.
Following the acquisition of AFT Automotive Group, RPM’s annualised revenue run rate has increased to more than $120 million.