Motus reports 22% increase in H1 operating profit

JSE-listed automotive group Motus has reported a 22% increase in half-year operating profit, reaching R2 billion. Chief Executive Officer Osman Arbee spoke with CNBC Africa's Zanele Morisson to discuss the company's performance and future outlook. Arbee expressed both gratitude for the progress made and acknowledgment of ongoing challenges in the industry. Despite facing obstacles such as inflation, high interest rates, and power problems, Motus managed to achieve a 14% revenue growth and a 25% increase in profits (EBITDA). The company's diverse business model, including new car sales, servicing, aftermarket parts, and mobility solutions, has helped offset challenges and maintain a robust financial position. Arbee highlighted the impact of the COVID-19 pandemic on the supply chain, mentioning the computer chip shortage that affected the industry. However, he noted that the situation is improving, with supply chains stabilizing and car shipments returning to near pre-pandemic levels. Looking ahead, Arbee projected continued growth for Motus, fueled by organic expansion and acquisitions, particularly in the UK and Australia. While South Africa remains a significant market, regulatory constraints and OEM approval processes limit growth opportunities, leading Motus to focus more on bolt-on acquisitions in the region. Arbee also discussed the balance between new and used car markets, noting that normalized supply levels have led to more stable pricing and growth potential in new car sales for the company. Overall, Motus remains optimistic about its future prospects, driven by a strategic approach to growth and resilience in the face of industry challenges.