Todd Hunter: Turners Automotive CEO on reporting a $21.9 million profit for the six months to September

Turners Automotive seems to be continuing to defy the odds, both with the economy and the second-hand market. 

They’ve posted a record $21.9 million profit, up 13% for the six months to September.  

The company is on track for a full year result of around $600 million, before tax. 

CEO Todd Hunter told Mike Hosking the used car market is resilient and with their strong place in it, there’s plenty of opportunities for them. 

He says the business has performed exceptionally well for more than a decade now, but they still feel like there’s a significant trajectory ahead. 

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Episode Transcript

Speaker 1 (00:00):
And if you're looking for positive business news, Turners can help.

(00:03):
Andrew alluded to check their record twenty one point nine
million dollar profit. It's up thirteen percent. This is for
the six months two September. Surely there's more to it
than just Tina. Todd Hunter is the CEO and is
with us. Morning Todd, Good morning Mike. Is this your
story or is it the broader industry story? In other words,
if you're in finance and cars, everyone's doing well.

Speaker 2 (00:23):
No, I would not say that. I would say this
is a Turner's story very much. Yeah. I think three
of our largest divisions are focused on the auto market
and have done very well. And I'm looking forward to
seeing what this team can do in better economic conditions.

Speaker 1 (00:38):
Went do you think there are better economic conditions coming?
Are you one of those who is bullsh Yeah?

Speaker 2 (00:43):
I'm positive about the outlaw coming. Is a question around
the speed of their recovery, but it's going to happen,
for sure.

Speaker 1 (00:49):
The advertising for Tina two point are you spent a
lot on in advertising? Does that tell us that advertising
works or is there just something magical about Tina?

Speaker 2 (00:58):
Oh? Advertising works for sure. There's a real brand story
around Tina. She's resonated beyond our wild the streams. So
there's a little bit of magic in there. But for sure,
if you spend in the right areas and do the
right things, you can get you can get a return
from that.

Speaker 1 (01:14):
Absolutely, finance is your biggest growth engine. So what does
that tell me about financing stuff? Are people bullish to borrow?
Is that the story?

Speaker 2 (01:21):
You know? I wouldn't say that. I would say we've
taken a good chunk of market share, which is which
is really driven the growth in our finance division. So yeah,
again we're just looking forward to when the economy is
really starting to harm and what that business can do
because there is so much opportunity ahead of us.

Speaker 1 (01:38):
And what are you doing on cars? Are people buying
more cars or better cars or they're just buying the
cars they have to buy and they happen to be
from you.

Speaker 2 (01:46):
That is the great thing about the used car market.
People people need to buy cars because they break down,
their circumstances change, they need a bigger one, a smaller one,
whatever it might be. I mean, that market is just
so resilient. And yeah, we've obviously got a strong place
in that market and plenty of opportunities still left for us.

Speaker 1 (02:07):
That importantly be moved by the government this week. I'm
assuming that affects you. Is it the right move from
the government.

Speaker 2 (02:12):
Absolutely, yeah, it's the right move. It's the right move
to help improve the quality of the fleet. You've never
seen it age quicker than it has in the last
sort of three or four years, that with those regulations
in place. So why wouldn't it make sense to replace
a twenty three year old car with a ten year
old car. I mean the emissions on those cars are

(02:34):
going to be significantly less, so it is a good.

Speaker 1 (02:36):
Thing, indeed, but they're replacing it with What does it
matter to you with what they replace it with?

Speaker 2 (02:42):
No, it doesn't. We I mean more transactions in the
market are good for our business, whether it's the twenty
three year old car leaving the fleet or the or
the new car being brought that that those increase in
transactions is very good for us.

Speaker 1 (02:57):
Are you on the up and up? Do I have
to get your back every quarter with another records that
we were heading Todd?

Speaker 2 (03:02):
Yeah? Well, look, I mean this business has performed exceptionally
well for more than a decade now. We've grown profits,
grown dividends. So yeah, we still feel like there's a
significant trajectory head for us. So I'd love to come back,
Mike and keep talking to you about Turner's's my favorite subject.

Speaker 1 (03:21):
Only have a good weekend. Tod Hunt, who's the CEO
of Turner's Automotive revenue plus five EBITs, plus ten profit
plus thirteen as I said, so it's all a good
news story and good on them. For more from the
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