2 Cheap Cars Group has provided an update on its performance outlook for the 2026 financial year, revealing that while vehicle sales are expected to exceed the levels of FY25, the company does not anticipate its net profit after tax (NPAT) for FY26 to reach the same level as the previous year.
The company attributed this to disappointing results in the first quarter of FY26, with both sales volumes and gross margins falling short of budgeted targets.
Despite successfully achieving cost savings, these were not enough to fully offset the decline in gross margin.
However, 2 Cheap Cars said there has been an improvement in sales performance in July, and it expects to exceed its monthly budget for the first time this financial year.
The company acknowledged the ongoing uncertainty and inconsistency in the market.
It also highlighted the short-term pressures on its supply chain and workforce as it advances its vertical integration strategy.
2 Cheap Cars Group said it is implementing measures to increase car acquisition and boost reconditioning throughput.
The company's new flagship site in Sylvia Park is on schedule to open in August 2025 and is expected to enhance performance in the second half of FY26.
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