Solid revenue growth for LatAm Autos in FY2016

03 Mar 2017

LatAm Autos (ASX: LAA), the Latin American auto classified platform operating in Argentina, Bolivia, Ecuador, Mexico, Panama and Peru, saw its net revenue increase 23 percent from FY2015 to FY2016, the company announced this week.

LatAm Autos said revenue rose to $8.2 million AUD ($6.2 million U.S.), thanks to “strong growth” in each of its key markets in Latin America.

LatAm Autos said revenue growth (in local currency) was above 40 percent on average, with Mexico and Argentina, its two top markets, increasing their revenue (in local currency) by 62 and 61 percent, respectively.

In AUD, revenue grew in Argentina and Mexico by 8.3 percent and 45.3 percent y-on-y respectively to $2.7 million AUD ($2 million U.S.) and $2.1 million AUD ($1.6 million U.S.).

LatAm Autos isn’t profitable, but it managed to improve its EBITDA at its Ecuadorian site PatioTuerca.com by 256 percent y-on-y to $523,000 AUD.

All its other operating segments reported EBITDA losses, ranging from $102,000 AUD in Panama to $6 million AUD in Mexico (look at table).

In FY2016, the Latin American auto vertical posted a net loss after tax of $14.9 million AUD, which was roughly unchanged from FY2015 (table at top).

Commenting its full-year results, LatAm Autos said it enjoyed strong growth in new revenue streams.

LatAm Autos continues on a trading halt, as previously reported by us. For the company’s comments on its full-year results, click here.

A more comprehensive exposition of the company’s financial metrics can be seen here.

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Léo Siqueira

Léo Siqueira joined the AIM Group in 2014 as writer and analyst for Latin America. He is a multimedia journalist based in, but not limited to Campinas, Sao Paulo. Siqueira has been writing, reporting, and consulting for different news outlets and corporations in Brazil and in the US. Siqueira has worked for almost three years as a correspondent in Brazil with ICIS, the world’s largest information provider for the global petrochemical industry, and has been working with other global publishers, such as USA TODAY and Motorsport.com. His expertise includes general news coverage, online, print and multimedia journalism, and corporate communications as well. In this particular area, he has been working with international clients.