9:26 am, October 27, 2023
Inchcape saw group revenue soar by 35% to £2.8bn during the third quarter versus the same period in 2022.
Issuing its results for July 1 to September 30, the global automotive distributor, which also has franchised dealerships in the UK, said there had been continued momentum in the Asia-Pacific (Apac) region as well as strong growth in Europe.
The group said it delivered a resilient performance in the Americas, with growth in most markets.
Five new distribution contracts were signed with Changan in the Philippines and across east Africa, with more in the pipeline.
Other highlights included completing acquisitions in Indonesia, the Philippines and New Zealand, which the London-headquartered company said were expected to contribute a combined revenue of around £400m a year.
The acquisitions were Mercedes-Benz’s distribution operations in Indonesia, CATS, a distributor of luxury vehicles in the Philippines, and Great Lake Motor Distributors, which distributes SAIC’s Maxus brand in New Zealand.
Inchcape said it also enjoyed 10% organic revenue growth – defined as sales growth in operations that have been open for at least a year at constant foreign exchange rates.
Distribution revenue rose by 47% on a reported basis, with organic growth of 13%.
Meanwhile reported revenue for retail was up by 2%, with organic growth of 1%. This, said Inchcape, was supported by volume growth in new vehicles from a stronger fleet market that offset muted consumer demand.
Excluding the impact of the agency model in the UK, retail organic growth was 12%.
Group CEO Duncan Tait said: ‘Inchcape produced another strong performance in the third quarter. We delivered continued momentum across Apac, supported by acquisitions, while our business in Europe and Africa performed well.
‘In the Americas, we are gaining share in key markets and the integration of Derco remains on track.
‘Driven by the highly cash-generative and capital-light characteristics of our business, Inchcape will continue to be a key consolidator in a highly fragmented market.
‘As a result of our market leadership positions, diversified business and digital and data capabilities to support our OEM partners, we remain confident about the medium-to-long-term outlook for the group.’
Pre-tax profit expectations for the 2023 financial year are unchanged from earlier this year and are expected to be towards the top end of the market consensus, estimated at between £470m and £506m.
