Carro reports record EBITDA in FY2023 driven by strong recurring ecosystem ancillaries
- Strong ~2x year-on-year revenue growth
- ~3x year-on year Gross Profit growth
- Gross Profit Margin (GPM) rose to ~9%, with final quarter at ~11%
- Highest-ever full-year EBITDA of USD3 million*
- Nearly 60% of Gross Profit from recurring ancillaries
- Liquidity ~USD560 million including cash, monetisable assets/investments and financing receivables, excluding another USD120 million in undrawn approved bank lines
Carro, Southeast Asia’s largest and most profitable online used car platform, has released another strong set of results for its latest financial year ending March 2023.
Carro recorded its best ever full-year positive EBITDA of USD3 million*. EBITDA achieved an annualised run-rate of USD35 million and a 4% EBITDA margin towards the end of the last financial year.
FY2023 Gross Profit Margin increased to 9%, with the final quarter ending on a high note with a GPM of 11%, more than doubling FY2022’s GPM. This is underpinned by strong ancillary income growth, which represents close to 60% of Carro’s Gross Profit in the final quarter.
Full-year revenue exceeded USD800 million, on the back of a USD1.5 billion Gross Merchandise Value (GMV). Carro sold and financed over 120,000 vehicles across Indonesia, Thailand, Malaysia and Singapore.
Genie, Carro’s fintech business, also recorded strong growth across the region and kept non-performing loans (NPL) at 0.2%, which is significantly below industry benchmarks. The overall loan book grew to over USD350 million.
Aaron Tan, co-founder and CEO of Carro says, “We are laser-focused on improving profitability and unit economics while optimising productivity and cost structure. It’s not about selling more cars; it’s about capturing more value and recurring income streams. As other businesses continue to focus on GMV growth at all cost, we strategically doubled down on building a sustainable business model and leveraged our ecosystem to drive more recurring ancillaries across the entire ownership and usership lifecycle. Our fintech and mobility business made significant strides in FY2023. We have also laid foundations for stronger growth in our insurtech business via strategic partnerships with ZA Tech and MSIG. , as well as aftersales.
Ernest Chew, Chief Financial Officer of Carro says “Not only did we hit record EBITDA in FY2023, our annualised EBITDA is tracking to plan with an EBITDA margin of ~4%. We expect to achieve 10x EBITDA this year. Even if we sold zero cars, we would be super-EBITDA positive today. Nearly 60% of our Gross Profit is from recurring ancillaries. This is the real benefit of a true, sustainable ecosystem-driven business model. We have almost no operational burn currently and EBITDA is positive across all our core markets. We have also built a fortress balance sheet and diversified our lending relationships to 17 financial institutions, who have offered us very competitive cost of financing.”
*EDIT 15 April 2024: This number was previously reported as USD4 million on 25 May 2023, which was correct at the time of publication. It was changed to USD 3 million on 15 April 2024 after post-audit adjustments.
*EDIT 15 April 2024: This number was previously reported as USD4 million on 25 May 2023, which was correct at the time of publication. It was changed to USD 3 million on 15 April 2024 after post-audit adjustments.
