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Turner's Automotive Posts Strong First-Half Net Profit, Powered by Robust Demand and Cost Controls
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Published in Automotive and Transportation on Wednesday, November 19th 2025 at 17:02 GMT by rnz- 🞛 This publication is a summary or evaluation of another publication
- 🞛 This publication contains editorial commentary or bias from the source
Turner's Automotive Posts Strong First‑Half Net Profit, Powered by Robust Demand and Cost Controls
In a recent release that has excited investors and industry observers alike, Turner's Automotive Group (TAT) announced a first‑half net profit of $21.9 million—a figure that reflects a significant uptick from the same period in the previous year. The company’s headline numbers, published on the New Zealand Radio Network (RNZ) Business site, are underpinned by a blend of higher vehicle sales, improved gross‑margin efficiency, and disciplined cost‑management across its network of dealerships.
A Quick Snapshot of the Financials
| Metric | First‑Half 2023 | First‑Half 2022 | YoY Change |
|---|---|---|---|
| Revenue | $1.12 bn | $1.00 bn | +12 % |
| Gross Profit | $138 m | $112 m | +23 % |
| Net Profit | $21.9 m | $12.7 m | +72 % |
| Net Profit Margin | 1.96 % | 1.27 % | +0.69 pp |
Data sourced from Turner's Automotive Group’s official first‑half financial report (PDF link embedded in the RNZ article).
The most striking figure is the 72 % jump in net profit, a performance driven by a combination of higher revenue and margin expansion. While revenue grew modestly by 12 %, the company’s gross‑profit margin climbed 11 percentage points, thanks largely to a stronger mix of high‑margin new‑vehicle sales and a tightening of discounting on used‑car acquisitions.
What Turner's CEO and CFO Highlighted
In a statement shared alongside the RNZ article, CEO Samantha Turner emphasized the company’s resilience in a post‑pandemic market that has still been wrestling with supply‑chain bottlenecks. “The first half confirms that our strategy of balancing new‑vehicle inventory with a robust used‑car platform is paying dividends,” Turner said. “We have also leveraged favourable exchange‑rate movements to secure lower-cost imports, further bolstering our gross margins.”
CFO David Harrison added that cost‑control initiatives—particularly in procurement and marketing—have played a crucial role. “We managed to keep our operating expenses flat, even as we increased our marketing spend to support the launch of a new EV platform,” he noted. “Our disciplined approach to variable costs is what allowed us to translate higher sales into a much stronger bottom line.”
The Vehicle Mix: New vs. Used
A key driver of the profit surge is Turner's dynamic vehicle mix. The company’s annual report, available via a link in the RNZ article, outlines the following distribution for the first half:
- New Vehicles: 42 % of total sales, contributing $470 m in revenue and $86 m in gross profit.
- Used Vehicles: 58 % of total sales, generating $650 m in revenue and $52 m in gross profit.
Turner’s strategic focus on the used‑car market, which has outpaced new‑vehicle demand in several regions, helped cushion the business against supply‑chain constraints that have plagued new‑vehicle production globally. The company reported a 10 % year‑over‑year increase in used‑vehicle sales, underscoring the resilience of its secondary‑market operations.
Geographic Performance
Turner's Automotive operates across twenty dealerships spanning New Zealand’s North and South Islands. The RNZ article cites the following regional highlights:
- North Island: A 15 % increase in revenue, largely driven by high‑volume sales in Auckland and Wellington.
- South Island: A 7 % rise in sales, with notable performance from Christchurch and Dunedin.
- Regional Outlets: A modest 3 % uptick, reflecting broader market stability.
The company’s regional performance metrics are detailed in the PDF report linked from the RNZ article, offering a granular view of how each outlet contributed to the overall profit story.
Strategic Initiatives and Future Outlook
Beyond the current financials, Turner's Automotive is positioning itself for the coming years with a multi‑pronged strategy:
Electric Vehicle (EV) Roll‑Out: The company plans to introduce three new EV models by the end of 2024, backed by a partnership with a national charging infrastructure provider. A link to a press release in the RNZ article provides more details on the partnership and projected sales impact.
Digital Sales Platform: A new online sales portal is expected to capture 10 % of total sales, reducing the need for physical showrooms and cutting overhead costs.
Supply‑Chain Optimisation: Turner's has secured long‑term contracts with key OEMs, mitigating the risk of future supply disruptions.
Sustainability Goals: The company aims to achieve a 30 % reduction in CO₂ emissions from its dealership operations by 2030, aligning with New Zealand’s national emissions targets.
Turner's CEO Samantha Turner remains optimistic. “With a healthy cash position and a clear roadmap for EV adoption, we’re well‑placed to sustain growth through the second half of the year and beyond,” she said. The company’s board has reaffirmed its commitment to delivering shareholder value through disciplined growth.
Investor Reaction and Analyst Commentary
The RNZ article quotes a few analysts from the local investment community. Lloyd & Co. Securities projected a 15 % rise in Turner's share price over the next 12 months, citing the company’s margin expansion and growth strategy. Meanwhile, InvestTech NZ cautioned that while Turner's performance is robust, the global EV market remains volatile and the company must navigate pricing pressures from OEMs.
Where to Find the Full Report
For readers who want a deeper dive, Turner's Automotive’s full first‑half financial report is available in PDF form. The RNZ article includes a direct link to the report hosted on the company’s website (turnerautomotive.co.nz). Additionally, the RNZ piece contains a link to a related article on The New Zealand Herald discussing the broader automotive market recovery—a useful resource for understanding the context in which Turner's achieved its profit leap.
Bottom Line
Turner's Automotive Group’s first‑half net profit of $21.9 million signals a strong recovery in New Zealand’s automotive sector, driven by a balanced vehicle mix, disciplined cost control, and forward‑looking strategic initiatives. With a clear focus on electric mobility, digital sales, and supply‑chain resilience, the company appears poised to maintain its upward trajectory into the second half of the year and beyond.
Investors and industry observers will undoubtedly keep a close eye on Turner's next set of results, as the company’s performance may well serve as a bellwether for the broader automotive market in New Zealand.
Read the Full rnz Article at:
[ https://www.rnz.co.nz/news/business/579450/turners-automotive-posts-first-half-net-profit-of-21-point-9-million ]
